In June, the Michigan Gaming Control Board reported a total adjusted gross sports betting revenue of -$28.2 million, largely due to BetMGM claiming a $48.2 million deduction from promotional bonuses and credits. This overshadowed the solid month that other betting operators had in the state, with $31.8 million in gross winnings from an 11.2% hold against a $285.2 million handle.
Despite the deduction from BetMGM, overall gross revenue was up 77.4% compared to June 2023, although the betting handle did decline 19.6% from May. This deduction resulted in a negative swing of $57.3 million in overall adjusted gross revenue among state operators.
BetMGM’s deductions raised questions about the timeline and extent of these free-play deductions in Michigan. The operator is tethered to MGM Grand in Detroit and had only taken some of their allowable deductions for online sports betting. They may not pay state taxes until 2025 due to carrying over AGR losses.
Meanwhile, FanDuel had a strong month with a 15.3% hold, collecting $14.8 million from a $96.2 million handle. DraftKings also saw success, with back-to-back months of double-digit holds and significant growth in their year-over-year win rate.
Overall, while BetMGM’s deductions had a significant impact on the June revenue report, other sportsbooks in Michigan had a successful month, leading to overall growth in gross revenue compared to the previous year.
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