FanDuel leads in Michigan as state records $115m in January betting handle

Michigan’s 11 online betting operators recorded $115.2m in handle during the market’s first 10 days of action to break Morgan Stanley’s initial prediction of less than $100m.

Betting revenue came in at $13.3m, while igaming revenue reached $29.4m between January 22 and January 31.

Operators contributed $4.4m in taxes to the state.

According to data released by the Michigan Gaming Control Board, FanDuel maintained a 28% share of the betting market, with DraftKings and Penn National Gaming’s Barstool Sportsbook seizing an additional 48% between them.

BetMGM made up the majority of the final slice of the pie with 20%, although it led in igaming with a respectable 38% market share.

FanDuel and DraftKings earned 29% and 24% of the igaming market respectively.

3 quick thoughts re: MI brand performance:

1. BetMGM's overall GGR share lead (38%) coincides w/ recent, material GGR share gains elsewhere

2. Barstool overall GGR share (8%) reflects absence of online casino

3. FanDuel sports GGR share (5%) reflects very low gross hold

— Chris Krafcik (@CKrafcik) February 17, 2021

“All companies meaningfully outperformed our 10-15% long-term share forecasts (igaming is typically more fragmented), highlighting potential upside, but there was less competition with Penn’s Barstool not launching until February,” said Morgan Stanley analysts Thomas Allen and Ed Young.

“While this is only 10 days of data and market dynamics may change, this supports our view that similar to mature markets, there will likely be just a handful of winners in each state,” the note added.

Meanwhile, Pennsylvania recorded an overall betting handle of $615.3m in January, or $33.9m in revenue.

Igaming revenue came in at $80.4m, 11% higher than December 2020’s record high of $71.6m.

New Jersey reported $958.7m in handle and $82.6m in sports wagering revenue. Igaming revenue hit $103.8m, up 88% on the previous year.