Michigan Gambling Market Shows Mixed Results in October
The Michigan gaming landscape presented a complex picture in October, with sports betting volume growing but profits declining, while online casino gaming reached new heights. Michigan’s sports betting market demonstrated strong customer engagement in October, with total handle reaching $582.6 million – marking a 5.7% increase from the previous year. This achievement represents the second consecutive month exceeding $500 million in wagers and stands as the fourth-highest monthly handle in state history.
However, the increased betting volume didn’t translate to proportional profits for operators. The month proved particularly favorable for bettors, resulting in a combined hold rate of just 5.5%. This led to gross revenue of $32.2 million, reflecting a substantial 30% decrease compared to October 2023. Even more striking was the adjusted revenue figure of $9 million, showing a dramatic 63.3% year-over-year decline.
Michigan Gambling Market Declines
The contrast between September and October was equally notable. Despite an 11.2% increase in wagering activity month-over-month, gross revenue fell by 45.6%. This decline can be largely attributed to favorable NFL results for bettors, which caused the hold rate to drop by nearly six percentage points from September.
Online sports betting continued to dominate the market, with digital platforms accounting for $560.4 million of the total handle. This pushed the year-to-date online wagering volume past the $4 billion mark. However, the modest 5.9% hold rate resulted in combined revenue of $33 million for online operators.
iGaming Achievement
In contrast to sports betting, Michigan’s online casino sector achieved remarkable success in October. The state’s 15 licensed online casino operators collectively generated $220.7 million in gross revenue, establishing a new record that surpassed the previous high of $215.2 million set in March.
The growth in online casino gaming was impressive from multiple perspectives. Revenue showed a robust 37.7% increase compared to the same period last year and an 8.9% improvement from September. After adjustments, the sector produced $198.6 million in revenue, contributing significantly to state coffers with $41.5 million in tax contributions.
This contrasting performance between sports betting and online casino gaming highlights the evolving dynamics of Michigan’s gaming market, where different sectors can experience varying levels of success even within the same month.
