The annual legal sports betting slide across the U.S. has become a right of passage. No NFL, no college football, and reduced playoff schedules in both the NBA and NHL continue to plague the best sports betting apps around the country every year at this time. All participating legal sports wagering states experience near, or over double-digit month-over-month declines in May.
We can officially add Michigan sports betting onto the list in May. Michigan, unlike some of the states that have reported their May revenues already, has experienced not only a month-over-month decline in handle and revenues but a year-over-year dip as well.
May handle for Michigan
The Michigan Gaming Control Board is reporting a $305.3 million May sports betting handle for the Wolverine State. While the overall handle remained above $300 million, May's figures represent a 9.7% decline from the $338.1 million from April. Perhaps more concerning is the year-over-year 14.2% decline from the $356.1 million in bets taken by Michigan sports betting sites in May 2022.
Michigan sports betting apps accounted for $288.3 million of the overall May handle. It is the worst online sports betting total since August, when Michigan's best sports betting sites took in $218.8 million. It is also a 13.5% drop from the $333.4 million online sports betting handle from May 2022.
Michigan's online handle has dropped 12.5% so far during 2023. Remember to keep an eye on Michigan sportsbook promos as we enter the slow summer sports betting months.
Michigan sports betting revenues virtually unchanged
Despite a drop in handle, sportsbook revenues for Michigan legal sports betting providers remained virtually the same. $36.1 million in profits were reported from Wolverine State sportsbooks in May, down ever-so-slightly from the $36.27 million in April. $35.2 million of the $36.1 million total revenues came from the best sports betting apps.
May 2023 sportsbook profits are slightly better than the $35.9 million reported in May 2022.
Michigan maintaining their profit-total from April to May was due to a jump in hold-rate for the state's best sportsbooks. Michigan's sports wagering providers held a sportsbook-friendly 11.8% in May, up from 10.7% in April and 10.1% in May 2022. The Michigan May sports betting hold is the best since 13.2% in September 2022.
State and local coffers received $2.15 million in taxes from Michigan's legal sports betting sector, which is down slightly from $2.32 million in April, but up from $1.99 million in May 2022.
FanDuel remains No. 1
FanDuel continued to dominate the race to the top among the sports betting sites in Michigan. FanDuel accounted for $105 million of the state's $305.3 million May sports betting handle. They also led the state in revenues with just over $18 million and hold-rate, which came in at an impressive 17.2% in May.
DraftKings was the second most popular sportsbook in the Michigan market in May. They generated $78.8 million in bets, and $7.8 million in revenues off of a 10% hold. BetMGM continues to fall further behind second place but maintained its podium spot in Michigan with $50.5 million in bets in May and $6.8 million in revenues.
Expect the slide to continue
The summer sports betting season has not traditionally been kind to sportsbooks in Michigan. Last year, the best betting sites in the state failed to hit the $300 million plateau during any of the three summer months. June saw a $292 million handle, July bottomed out with under $225 million in bets, and August saw just $229.8 million.
September however will be the start of the sports betting spike in Michigan. September, with the NFL in full swing produced $383 million in bets and October produced a record handle for Michigan that stands until this day - $504.3 million.