Since sports betting went live in January of this year, Michigan has seen billions of dollars in wagers placed in its sports betting market. However, while the citizens of the state are enjoying these easier avenues to place bets, few in-state companies have been given opportunities to profit. Michigan’s sports betting is instead taken up mostly by large corporate entities.
Like in much of the country, the industry’s leaders continue to dominate the sports betting space. The two standout companies are betting giants DraftKings and FanDuel. The two are currently vying for control of Michigan and maintain incredibly close percentages of overall wagers.
As it stands now, FanDuel controls approximately 29% of the market, while Draft Kings holds close behind at 28%. While numbers in July were down for both of the sports bookers, they still brought in a hefty sum of revenue. The two constantly shift in who is pulling ahead, but one thing is certain. They are leagues above their competition in Michigan.
Michigan Sports Betting
July was not a good month for sports betting in Michigan, as they saw their lowest monthly volume of betting handles since the sports gambling law went live. While the lifetime handle began to close in on the $2 Billion marks, the overall quantity of wagers dropped 20% between June and July.
This mirrors the first month of sports gambling in the state, where only $150 Million in wages were placed. However, numbers rose steadily from there, and while July was slow, Michigan’s sports betting industry is still set to be a major source of tax revenue for the state.
As for a reason July was less than profitable, an analyst for playmichigan.com has this to say.
“Pursuits other than gaming are priorities for many in July, whether that is a trip to the lake or a backyard barbecue,” said Matt Schoch, “The good news for sportsbooks is that with the July dip now out of the way, operators can look forward to Michiganders returning from their summer vacations and for the excitement for the football season to build.”
While DraftKings and FanDuel are the frontrunners, other large companies do still operate in the state’s growing sports betting market. BetMGM comes in at number 3, and while they do fall about 10 million behind the other two companies, their revenue is growing. BetMGM is associated with the brick-and-mortar establishment MGM Entertainment, which runs the MGM Grand Casino in Las Vegas.
Behind BetMGM is the up-and-coming Barstool sportsbook and their partnership with Penn National Gaming. But the gap between BetMGM and Barstool sportsbook is vast, with a difference of $30 million in online handle between the companies in July. In addition, the partnership is new, and time will tell whether they can produce a competitive online product.
Additionally, their larger sportsbook compatriots are also gobbling up some smaller competitors. Golden Nugget Online Gaming, for example, brought in a little under a million in July, is being acquired by DraftKings. As companies continue to consolidate and combine, this edges out smaller competitors more and more effectively.
Rush Interactive, which has been winning their sportsbook application bids in many states, is also taking a small slice of the pie in Michigan. They had close to $7 million for their handle in July, just above the handle of Golden Nugget Online Gaming. Rush interactive has been steadily building up steam in the sports gambling industry. Other states where they recently gained licenses include Louisiana, Mississippi, and New Mexico.
Sports Betting Moving Forward
As it stands, DraftKings and FanDuel still tower over the competition in the state of Michigan. With their continued domination of the market share, it is uncertain whether any smaller entities in the state will gain any headway in producing revenue.
Though the services both offer a quality user experience, state legislators and residents of Michigan would certainly love an option that puts money in the pockets of local business owners. Unfortunately, it remains to be seen whether smaller sportsbooks will get the chance to gain any ground as the giants of the industry continue their tight grip on local sports betting revenue.