Michigan Sportsbooks Take Massive Hit to Revenue for December

The fallout from a bettor-friendly NFL season continues.

The Michigan Gaming Control Board reported that the state saw $20.5 million in gross revenue for December. That is a stunning 69% drop from December 2023 for one of the nation’s most profitable sports betting markets. The massive dip in revenue occurred despite the handle increasing by roughly 1%.

The state is the latest to report subpar numbers for the NFL season. While the sport saw a historic amount of wagers this season, the betting favorites won at the highest clip in over 20 years. With favorites attracting far more wagers, sportsbooks take bigger losses when they win. 

As a result, operators in the state reported a hold percentage of just 3.3%. That is the lowest number the state has seen in almost four years and the second-lowest all time. The low hold meant less tax revenue for Michigan.

Michigan is home to one of the NFL’s top teams, the Detroit Lions. The team lost just twice as fans from around the state began flocking to sportsbooks to support their squad. While that cost sportsbooks during the season, it likely worked in their favor when the Lions suffered a stunning upset in the playoffs.

Sportsbooks Prepping Investors for Final NFL Numbers

Sportsbooks across the US have felt the consequences of a rough NFL season. As a result, operators like FanDuel have sent profit warnings to investors. The warnings cited the NFL season as leading to more losses but assured them that the numbers would spike once again when it was over. 

BetMGM has taken a different tactic, sharing that it was sticking with its projections for the season. The operator had expected to take losses as it looked to improve and invest in its platform, meaning its projected revenue numbers were lower. However, the operator is taking a risk by ensuring investors that its numbers are still good as rivals adjust theirs.