BetMGM claimed $48.2 million to skew Michigan’s June sports betting AGR numbers

On Thursday, the Michigan Gaming Control Board reported -$28.2 million in adjusted gross sports betting revenue for June. That’s because BetMGM claimed a $48.2 million free-play deduction from promotional bonuses and credits. The enormous deduction from BetMGM overshadowed the solid month that other betting operators had in the state. They claimed $31.8 million in gross winnings from an 11.2% hold against $285.2 million in the handle. Additionally, gross revenue was up 77.4% compared to June 2023. However, their betting handle declined 19.6% from the $354.8 million in May. The deduction from BetMGM resulted in a negative swing of $57.3 million in overall adjusted gross revenue among state operators.

Attempting to understand why BetMGM got these deductions

In June, BetMGM’s handle was $40.5 million. With that, it’s unclear how long the deduction covers. A spokesperson for the Michigan Gaming Control Board explained that the online operator BetMGM is tethered to MGM Grand in Detroit. BetMGM had only taken some of their allowable free play deductions when it comes to online sports betting in the state. There is no timeline specified as to how long a deduction period could span. Mobile sportsbooks in Michigan can carry over AGR losses until zeroing out on the balance. That means BetMGM might not pay state taxes until 2025. In June, BetMGM’s AGR was a whopping -$45.7 million. Their AGR for 2024 is now -$28.8 million. BetMGM finished with an 8.9% hold in June, 1.9 percentage points higher than June 2023

What sportsbooks saw profit during June in Michigan?

FanDuel’s 15.3% hold was the best of their year so far, collecting $14.8 million in gross revenue from a $96.2 million handle. It was the first time since last August that FanDuel went over $100 million in accepted wagers in Michigan. Their biggest rival, DraftKings, had back-to-back months with a double-digit hold. DraftKings collected $8.3 million from $82.8 million in wagers. Additionally, DraftKings cleared $4 billion in an all-time handle. Their year-over-year win rate tripled compared to June 2023.