Detroit Sportsbooks Take First Monthly Loss Thanks To Brady, Wolverines Hoops
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In a significant turn of events, Michigan sports bettors emerged victorious against the house for the first time in almost a year since the inception of Detroit casinos’ sportsbooks.
In a month where $23.7 million was wagered on sports, the downtown sportsbooks suffered a collective net loss of $77,627. The decline in tax revenue was significant as well, with less than $10,000 being generated for public funds.
MotorCity Casino has once again claimed the top spot in sports betting handle, reporting $11.2 million for the second consecutive month. With a 47.4% market share, its FanDuel Sportsbook at MotorCity Casino continues to dominate the industry.
In February, Super Bowl LV took center stage on Feb. 7, marking the first complete month where Detroit sportsbooks operated alongside the newly introduced online sports betting market. The triumph of a hometown hero leading the Tampa Bay Buccaneers to the NFL championship, combined with some notable achievements in local college basketball, provided a boost to the morale and betting enthusiasm of local bettors.
Detroit retail sportsbooks at a glance
In every month of 2020, MGM Grand Detroit dominated the sports betting industry with the highest betting handle. However, in February, they secured the second position with a sports betting handle of $6.7 million, accounting for a remarkable 28.2% market share.
There is a possibility that MotorCity’s consecutive month of being at the forefront of the market might hint towards a takeover, although FanDuel Regional Manager Jeff Hoose accepted that the battle will persist in being challenging.
On Tuesday, Hoose informed Playinmichigan that the market is highly competitive, with some exceptional rivals. He expressed his determination to maintain our position by consistently providing the finest product and service to our players. Anticipating a challenging journey, Hoose emphasized that every month will be a battle.
In February, Greektown Casino ranked third in terms of handle, generating $5.8 million, which accounted for 24.4% of the market share. Among the three competitors, only Greektown reported positive sports betting revenue in Michigan, earning nearly $115,000. Consequently, the casino paid $4,340 in state taxes, while the city of Detroit collected $5,304 in taxes for the month.
| Casino | Handle | Revenue | State tax (3.78%) | City of Detroit tax (4.62%) |
|---|---|---|---|---|
| Total | $23,711,983 | -$77,627 | $4,340 | $5,304 |
| MotorCity Casino | $11,242,016 | -$183,680 | $0 | $0 |
| MGM Grand Detroit | $6,695,253 | -$8,761 | $0 | $0 |
| Greektown Casino-Hotel | $5,774,713 | $114,814 | $4,340 | $5,304 |
Bettors cash in on Tampa Bay, college basketball local teams
According to Hoose, the love for Tom Brady in Michigan is genuine.
During the Super Bowl at MotorCity, Hoose, the manager of FanDuel sportsbooks in the Midwest, expressed his delight at the amazing turnout and the overwhelming support for the Tampa Bay team.
Aside from placing future bets on Brady, a former Michigan quarterback, the majority of the evening’s excitement revolved around the underdog Bucs as they faced off against the Kansas City Chiefs.
Additionally, Hoose attributed the players’ success to the impressive performance of the Michigan basketball team, who achieved a flawless 5-0 record for the month. Furthermore, Michigan State’s remarkable back-to-back victories against Illinois and Ohio State, both among the top five teams, provided a boost to bettors.
New online market could impact retail revenue going forward
Detroit’s casinos saw a staggering $59.4 million in wagers from sports bettors during the initial two months of 2021.
Furthermore, within the initial 10 days following the launch on January 22, residents placed bets worth a staggering $115.2 million on sports through online betting. Surprisingly, even with the casinos in Detroit closed for a significant portion of the year due to the pandemic, sports bettors managed to wager an impressive $130.8 million in 2020 after they reopened on March 11.
The figures for online sports betting in Michigan for the month of February have yet to be disclosed by the state’s 12 operators.
According to Hoose, MotorCity experienced significant overlap with online sports betting, particularly among bettors who utilized the Cash at Counter service. Hoose mentioned that individuals from various parts of the state would travel to MotorCity to collect their online FanDuel winnings at the sportsbook counter. The entire process for this service may take approximately 48 hours to finish.
Although the tribal casinos in the state have sportsbooks, they do not provide the Michigan Gaming Control Board with any reports regarding their numbers. However, the regulator does have authority over their online operations, as bets can be placed outside of their reservations.
Overall casino revenue down 29% from last February
In total, the revenue generated by Detroit casinos amounted to $86.4 million, with MGM taking the lead by capturing 40% of the market share.
In Detroit, the revenue from table games and slots witnessed a significant 29% decline in comparison to February 2020, mainly due to the ongoing operational restrictions imposed on the casinos. However, on Friday, the casinos were granted permission to increase their capacity to 30%.
In January, fantasy sports operators generated $2.2 million in revenue, contributing $186,699 in taxes to the state.
