Since its launch in January 2021, online sports betting in Michigan has been an undoubted hit. While encountering months slower than others, the industry has seen consistent growth, with August totals bringing year-to-date online and retail betting volumes to more than a staggering $2 billion. Some busy months lie ahead for sportsbook operators, and an upward revenue trajectory is expected.
Looking at the numbers
While wagering volumes have increased, revenues remain stagnant as sports betting operators prepare for the busiest four months in America’s sporting calendar. The Gun Lake online sportsbook is enjoying unprecedented success, with more bettors using its website. Online sports betting revenues dropped from $19.6 million in July to $15.9 million in August, a big decline despite taking in more bets.
Online sportsbooks took in bets totaling $192.3 million in August, a relatively quiet period as everyone eagerly awaits the NFL (National Football League) 2021/2022 season launch. A few preseason and college games took place in August, with the real action kicking off in September. Consequently, betting volumes and revenues should see a marked increase this month.
The NFL: A national asset
Sportsbook operators know how much value that football adds to their business. Indeed, many enterprises owe their entrepreneurial success to football, whether their operations are directly or indirectly related to the game. Many sports betting facilities in Michigan have used these past few months as a warm-up for the coming months, testing their systems in preparation for a surge of activity in September.
Football is America’s most bet-on sport, meaning this season will be a revenue-generating opportunity few betting operators want to miss out on. With more than 270 games in a season, betting volumes look set to increase.
The bigger picture
Given the boom in online businesses brought on by Covid-19, online casino games and sports betting look set to keep increasing their market share in the retail gambling industry. Despite many physical facilities reopening, gamblers remain hesitant about returning to them due to Covid transmission risks.
Michigan’s online casinos contribute more to its online gambling revenues than sports betting, although this gap could close as more people place wagers during the NFL season. The addition of live dealer games to many Michigan online casinos has created another surge in player numbers, with users feeling it recreates the sensation of being in a brick-and-mortar casino more than traditional online casino games.