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SPORTS BETTING

US – Michigan online sportsbooks at their lowest in July

By - 17 August 2021

Michigan’s online sportsbooks fell to their lowest volume ever for a full month, dropping to less than $200m for the first time since online sports betting launched in January. July’s wagering was still enough for sportsbooks to nearly reach $2bn in lifetime online handle, while casino revenue ticked up and surpassed $500m.

“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, analyst for PlayMichigan.com. “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.”

Michigan’s online sportsbooks generated $188m in bets in July, down 20 per cent from $235.1m in June, according to official data released Monday by the Michigan Gaming Control Board. Combined with $18.3m in retail wagering in July, which was announced last week, Michigan’s online and retail sportsbooks accounted for $206.m in wagering. That total is down 20.5 per cent from $259.4m in bets in June.

That is the lowest volume recorded in a month since sportsbooks collected $150.8m in January, when online betting first launched on 22 January. Still, Michigan’s online and retail sportsbooks have now accepted $1.99bn in wagers since retail sportsbooks launched in March 2020.

Gross gaming revenue from online betting fell 21.6 per cent to $19.6m from $24.9m in June, pushing the state’s combined win to $20.8m for the month. After promotional credits, $12.4m in taxable revenue remained from online bets, down from $16.8m in June. July’s online revenue produced $1.1m in state and local taxes.

Sportsbooks have countered the loss in wagering with a gain in hold percentage, which is the money the house keeps after paying out winning bets. The hold in July for online and retail sportsbooks was 10.1%, one of only two full months with a percentage above 10% since online betting launched.

“Bettors interact with summer sports like golf and even the Olympics differently by placing more futures and novelty bets, which win less frequently than a conventional single-game bet on football,” said Eric Ramsey, data analyst for the PlayUSA.com Network, which includes PlayMichigan.com. “For this reason, sportsbooks can bridge the slower betting months.”

FanDuel topped online operators in July with $54.5m in wagers and $7.8m in gross revenue. DraftKings was second in the state with $53.4m in wagers.

“The Olympics were never going to drive enough volume for operators to overcome a typically slow summer month, especially with the time-zone difference between Michigan and Tokyo,” Schoch said. “But the Olympics did offer an opportunity for sportsbooks to reach a new segment of customers that they wouldn’t have otherwise. That could pay dividends down the road.”

Michigan’s online casinos and poker rooms produced $92.3m in gross gaming revenue, up 3.5 per cent from $89.2m in June. Casinos took in $3m per day in wagers over the 31 days of July, a rate consistent with the $3m per day in June. That revenue was enough to yield $17.1m in state taxes and $6.4m in local taxes.

Since launching in January, online casinos and poker rooms have generated $575.4m in revenue and $141.8m in state and local taxes.

“Many of the same forces that slow sports betting in the summer, including summer vacations, also affect online casinos,” Ramsey said. “Michigan is still a young market that hasn’t yet reached maturity. The addition of live dealer games will make a difference going forward. And as the summer turns to fall, we should once again see the revenue at online casinos grow.”

BetMGM/MGM Grand Detroit continued to dominate the online casino and poker market with $33.8m in gross gaming revenue.

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