Michigan Tops $600 Million in Sports Betting Handle in January

After a strong month for Michigan sports betting in December, the state's best sports betting sites carried momentum into January with the second straight month of at least $600 million in total wagers accepted in the Wolverine State.

The Michigan Gaming Control Board January revenue report, which was released Tuesday, revealed a slight dip in handle and a more substantial drop in revenue for Michigan sports betting apps compared to December. However, sports betting activity in the state showed huge gains from the same one-month period in 2023. 

January's handle was likely buoyed by the Detroit Lions' run to the NFC Championship, which was accompanied by plenty of Michigan sportsbook promos leading up to that contest. While other states have already reported double-digit drops compared to their December handle, the best sportsbooks in Michigan saw only a slight dip during the January wagering period.

Michigan draws $601.6 million in January sports betting

Michigan bettors spent a total of $601.6 million with the state's best sports betting apps and retail sports wagering providers. That figure is just a 1.9% month-over-month drop from the $613.4 million reported in December but is up an impressive 22.5% from the nearly $491 million handle in January 2023.

Michigan sports betting sites made up the vast majority of the state's January sports betting take, as $577.4 million of the overall $601.6 million came from those online providers.

Revenues up from January 2023, down from December

Gross sports betting revenues for Michigan's best sportsbooks came in at $48.2 million for January, which was down 27.1% month-over-month from the $65.9 million in December.

Still, that came in 42.7% better than the nearly $33.8 million from January 2023. The hold rate for Michigan sportsbooks last month was just over 8%.

Adjusted gross revenue, which is calculated after promotional credits and bonuses, was reported to be $28.9 million in January, which is an impressive 82.6% year-over-year spike for Michigan sportsbooks. January represented the fifth straight month that adjusted gross revenue topped $20 million in the Wolverine State.

Meanwhile, $1.3 million in tax revenue was collected for state coffers off the adjusted gross revenues from Michigan sportsbooks, with $685K in taxes collected by the city of Detroit.

FanDuel prevails in Michigan handle and revenue battle

The race to be the most popular Michigan sports betting app once again came down to the "Big Two" sportsbooks, as FanDuel Michigan and DraftKings Michigan were by far the most successful providers in the Wolverine State in January.

FanDuel came out on top and set monthly records for handle and revenues along the way, reporting $214 million in accepted bets in Michigan in January with $26.7 million in gross winnings off an impressive 12.5% hold. It was the second straight month that the provider claimed over $20 million in winnings in the state, marking the first time FanDuel Michigan has achieved that feat.

DraftKings finished second with $166.8 million in January bets and $10.9 million in gross gaming revenues off an underwhelming 6.6% hold. BetMGM was third in the Michigan sports betting apps market with $73.2 million in accepted wagers and $5.8 million in January revenues. BetMGM has now eclipsed the $250 million mark in terms in lifetime gross revenues in the Michigan market.

ESPN BET finished fourth with regard to handle in the state thanks to $52.2 million in accepted January bets. That figure represents about a 9% mobile market share from ESPN BET, which surpassed its goal of a 7% market share in its first year of operation. An ugly 2.2% win rate held ESPN BET's gross revenues to just $1.1 million.

Those numbers could change in the future after PENN Entertainment announced the first retail sportsbook for ESPN BET, which will launch at the Hollywood Casino at Greektown in Detroit sometime in April.

Rounding out the top five for January was Caesars Sportsbook Michigan, which recorded $37.5 million in betting handle, while PointsBet brought in $11.1 million in bets last month.