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Michigan Online Sports Betting Winners and Losers As We Head Into The Summer
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Does Michigan have what it takes to compete with the big boys of online sports betting? While it still lags behind powerhouse states such as New Jersey and Nevada, Michigan online sports betting has shown signs of life since March.
However, despite the improvement in sports betting handle, several sportsbook operators are still reporting low numbers for 2021.
For the past three months, Michigan’s overall sports betting has ranked in the top-five of states in terms of total sports betting handle. It has eclipsed the $1 billion total sports handle mark for 2021 and reported the third-highest sports betting handle in the country for May.
Top five states in sports betting handle in May:
- New Jersey: $814 million
- Pennsylvania: $447 million
- Michigan: $258 million ($237.5 million online)
- Indiana: $254 million
- Colorado: $249 million
Top five states in April:
- New Jersey: $748 million
- Illinois: $537 million
- Pennsylvania: $479 million
- Nevada: $458 million
- Michigan: $274 million ($249.8 million online)
Top five states in March:
- New Jersey $860 million
- Nevada: $641 million
- Illinois: $634 million
- Pennsylvania: $560 million
- Michigan: $384 million ($359 million online)
While total handle has decreased in Michigan since March, the recorded $384 million in handle that month was its highest ever. March Madness tournaments will do that.
Despite the promising amount of money being bet in the state each month, the majority of sportsbooks in the state are still reporting negative adjusted gross sports betting receipts when it comes to online sports betting. Most are still not making online sports betting state tax payments.
Internet sports betting tax payment percentages are based on each book’s adjusted gross sports betting receipts. Sportsbooks that remain in the red in adjusted gross sports betting receipts do not make tax payments to the state. No sportsbook in the state has made an online sports betting tax payment each month since mobile sports betting’s launch in January 2021.
Michigan Online Sports Betting Winners
Based on adjusted gross sports betting receipts from the Michigan Gaming Control Board, BetMGM Michigan has been the most successful online sportsbook operator in the state. Since its launch date, BetMGM Michigan, which is affiliated with its MGM Grand Detroit casino, has seen $15.3 million in adjusted gross sports betting receipts and has paid Michigan nearly $900,000 in internet sports betting taxes in 2021. No other online sportsbook operator in the state has taken in half of what BetMGM has in terms of adjusted gross sports betting receipts.
The other clear-cut winner is FanDuel Michigan, which is partnered with the MotorCity Casino. Despite losing more than $10 million in adjusted gross sports betting receipts in January and February, FanDuel has posted positive gains in March, April and May to post $6.5 million in adjusted gross sports betting receipts in 2021, the second highest in the state. May was the first month it was required to pay online sport taxes to the state and made a payment of $385,818 to Michigan, the highest monthly payment any sportsbook has yet to pay.
Barstool Sportsbook, which is partnered with Greektown Casino, is the only other online sportsbook operator that has posted adjusted gross sports betting receipts in the millions, notching $5.8 million since launch. While only having one month in the red, Barstool Sportsbook has seen its receipts dip over the last three months, only posting $737,394 in May. It has paid Michigan a total of $346,445 in internet sports betting taxes in 2021.
Only three other sportsbook operators in the state have adjusted gross sports betting receipts this year:
- FoxBet Michigan, which has partnered with the Little Traverse Bay Band of Odawa Indians, reported $430,482 in adjusted gross sports betting receipts and has paid Michigan $36,160 in taxes.
- Wynn Bet, which has partnered with the Sault Ste. Marie Tribe of Chippewa Indians, reported $384,926 in adjusted gross sports betting receipts and has paid Michigan $32,333 in taxes.
- William Hill, which has partnered with the Grand Traverse Band of Ottawa and Chippewa Indians, reported $179,656 in adjusted gross sports betting receipts and has paid Michigan $16,377 in taxes.
Michigan Sports Betting Apps Lacking Revenue
DraftKings Michigan has struggled to gain footing in Michigan since its launch. Partnered with the Bay Mills Indian Community, DraftKings has posted -$2,374,718 in adjusted gross sports betting receipts, far and away the worst adjusted receipts of any online sportsbook in the state. March was a positive month for the book as it notched $3.6 million in adjusted receipts, but these plummeted by 73% in April as the book only reported $998,294. May was even worse as adjusted receipts decreased by more than 178% from April, as the sportsbook reported -$781,131. It has yet to make a tax payment in 2021.
BetRivers Michigan, which has partnered with the Little River Band of Ottawa Indians, reported -$633,590 in adjusted gross sports betting receipts in 2021. It has yet to make a tax payment to Michigan. February was a disaster for the sportsbook operator, as it reported -$444,032 in receipts for the month.
PointsBet Michigan, which has partnered with Lac Vieux Desert Band of Lake Superior Chippewa Indians, reported -$1,051,256 in 2021. It has yet to post a positive month in adjusted gross sports betting receipts and has yet to make a tax payment to Michigan. It reported -$355,072 in adjusted receipts in April and improved to -$93,079 in May, so perhaps the sportsbook operator is moving in the right direction?
Here are the rest of the online operators in the red for 2021:
- Pokagon Band of Potawatomi Indians, which operates online under its Four Winds Casino brand, reported -$447,935 in adjusted gross sports betting receipts. It has not yet made a tax payment to Michigan.
- Hannahville Indian Community, which operates online through its partnership with Churchill Downs Inc., reported -$436,880 in adjusted gross sports betting receipts. It has not yet made a tax payment to Michigan.
- Keweenaw Bay Indian Community, which operates online through its partnership with Golden Nugget, reported -$57,878 in adjusted gross sports betting receipts. It has not yet made a tax payment to Michigan.
Total online sports betting handle
Regulatory Writer and Editor for XLMedia. Sports. Gambling. Not necessarily in that order. Follow him on Twitter @rlinnehanxl