Michigan online sports betting revenue spikes in September
Although handle was up only 4%, online sports betting revenue leapt 27% in Michigan during September, with US$56.3 million in win on handle of US$557 million, holding at 10.1%, according to figures released by J.P. Morgan analyst Daniel Politzer.
Promotions were consistent on a year-year-basis. They represented 5.5% of handle, down incrementally from September 2025’s 5.6%.
FanDuel led all books with US$189.5 million, holding at 9.1%. It represented over a third of all handle, with 34%.
DraftKings achieved a 34% revenue surge in spite of seven percent lower handle. It held at 9.3%, winning US$153.7 million.
The state-highest hold percentage belonged to BetMGM, which realized 13.3%. It made US$59.4 million although its handle share fell 11%.
The loosest hold belonged to Caesars Sportsbook at 5.8%. Caesars achieved US$21.3 million, as its handle share dropped 14%.
In between, at 9.8% hold, was BetRivers. It saw revenue of US$9.1 million on modestly higher handle, as winnings vaulted 42%.
Edging Caesars slightly was theScore Bet, which won US$21.5 million. Fanatics Sportsbook placed fourth in the state, behind BetMGM, with US$48.9 million.
Surpassing theScore and Caesars was Bet365 with US$30.1 million. All other books combined for US$23.7 million.
iGaming revenues in Michigan surged 16% in September. They cumulatively grossed US$300 million.
The most dramatic movement in revenue belonged to Fanatics. Its US$20 million was a 42% vault from September 2025.
The iGaming revenue leader remained FanDuel. It was up 4% to US$74.2 million.
In a contrary movement, BetMGM dipped 4% to US$63.3 million. DraftKings jumped 10% to US$54.3 million.
Besting Fanatics for fourth place with US$22.6 million was BetRivers, up 13%. Newcomer Hard Rock Bet logged US$19.4 million and Caesars Palace Online followed with US$17.9 million, a 1% dip.
Further back, with US$7.9 million, was Hollywood Casino, up 2%. Relative newcomer Bet365 recorded revenue of US$6.6 million. All other iGaming providers combined for US$14.1 million, a 15% aggregate improvement.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
September results fit a broader hold-driven pattern
Michigan’s September surge underscores a recurring theme across U.S. online sports betting markets: Revenue can move sharply even when wagering volume changes only modestly. The state’s 27% jump in online sports betting revenue, against a 4% increase in handle, was primarily a hold story. Operators kept 10.1% of wagers, a level that can materially lift gross win without requiring a comparable increase in customer betting.
That dynamic has been visible in several regulated markets this year. In New York, online sports betting revenue rose 34.3% in March despite a 4.6% decline in handle, as books won $217.3 million on $2.3 billion in wagers. The market’s 9.3% hold, led by FanDuel and DraftKings, showed how operator margins can offset softer betting volumes in mature jurisdictions. The same pattern appeared in Oregon, where DraftKings, the state’s sole online sports betting provider, posted a 59.8% September revenue increase even as handle slipped 4.9%, helped by an 11.5% hold and strong parlay performance.
Michigan’s September data therefore did not emerge in isolation. It reflected a market where hold percentages, promotional discipline and product mix increasingly determine monthly revenue outcomes. In large states with established customer bases, gains are less dependent on rapid handle expansion and more tied to operators’ ability to retain a larger share of wagers.
FanDuel and DraftKings remain the central axis
The Michigan market continues to be anchored by FanDuel and DraftKings, a structure mirrored in other states. FanDuel led Michigan sports betting handle with $189.5 million, or 34% of the market, while DraftKings produced a 34% revenue increase despite lower handle. Their scale gives both operators advantages in pricing, customer retention and cross-selling between sports betting and iGaming.
That dominance has been evident elsewhere. In Maryland’s April online sports betting market, FanDuel generated the highest gross revenue and strongest hold among major operators, winning $29 million on $224.2 million in handle. DraftKings ranked second with $16.9 million in revenue. In New York’s March revenue jump, FanDuel led in win, handle and hold, while DraftKings followed closely with $77.5 million in revenue.
The consistency across markets matters for Michigan because the state is both a sports betting and iGaming market. Operators with strength in both verticals can manage customer acquisition costs over a broader revenue base. FanDuel’s Michigan iGaming revenue rose 4% to $74.2 million in September, while DraftKings increased 10% to $54.3 million. Those figures reinforce the competitive position of the two largest national platforms, even as second-tier operators pursue share through promotions, product updates and brand partnerships.
Promotional discipline has become a key test
Michigan’s promotional spending was steady year over year at 5.5% of handle, down slightly from 5.6%. That stability is notable because aggressive promotions can inflate handle while depressing profitability, particularly in newer markets. The balance between acquisition spending and retained revenue has become one of the most important indicators for analysts tracking online betting operators.
Missouri offered a recent example of how volatile early promotional cycles can be. In the state’s debut month, online sports books generated $103.4 million in revenue on $538 million in handle but spent $125.1 million on promotions, producing a net loss. The market launched with an unusually high 19.2% hold, but promotional outlays more than erased gross winnings. FanDuel and DraftKings accounted for most of the spending, together committing more than $100 million in incentives.
By February, the Missouri market had begun to normalize. Promotional allowances fell to $11 million, or 36% of revenue, compared with 61% in January. The shift, detailed in Missouri’s February promotional slowdown, showed the typical post-launch transition from customer acquisition to more disciplined spending. Handle and hold remained volatile, but the sharp reduction in incentives suggested operators were moving toward sustainable economics.
Michigan is well beyond that launch phase. Its September promotional ratio suggests a more mature market in which operators are not broadly sacrificing margin to chase incremental handle. That helps explain why a modest handle increase could translate into a much larger revenue gain.
Mid-tier operators are fighting for durable share
Beyond FanDuel and DraftKings, Michigan’s September figures showed a competitive middle tier. BetMGM held a state-high 13.3% in sports betting and generated $59.4 million, although its handle share fell. Fanatics Sportsbook ranked fourth with $48.9 million, while Bet365, theScore Bet, Caesars Sportsbook and BetRivers all remained relevant in the market’s second tier.
The challenge for these operators is consistent across states: They must convert brand recognition, pricing or promotional strategy into stable handle without overpaying for customers. In Maryland, Fanatics edged BetMGM for third place in April revenue, $4.5 million to $4.2 million, despite similar handle. In Missouri’s first month, Fanatics, Caesars and BetMGM were closely bunched in revenue, while Bet365 posted the market’s tightest hold. Those results showed that operators outside the top two can have strong monthly performances, but often lack the scale advantage to consistently displace the leaders.
Michigan also highlights how sports betting and iGaming performance can diverge. BetMGM’s sports betting hold was strong, but its iGaming revenue slipped 4% to $63.3 million. Fanatics moved the other way in online casino, with revenue up 42% to $20 million. BetRivers also showed strength in both areas, with sports betting revenue up 42% and iGaming revenue up 13%. Those moves suggest the middle tier remains fluid, particularly where operators can use casino products to deepen engagement with existing sports bettors.
iGaming adds a larger strategic layer
Michigan’s iGaming market is central to the state’s overall online gambling story. September iGaming revenue reached $300 million, up 16%, far exceeding sports betting revenue in absolute terms. That scale changes the competitive stakes. Online casino tends to produce more consistent margins than sports betting, where monthly results are affected by game outcomes, parlays and seasonal calendars.
Operators that perform well in both segments can absorb volatility in sports betting and focus on lifetime customer value. FanDuel’s leadership in Michigan iGaming, combined with its leading sports betting handle, gives it a broad revenue base. DraftKings’ double-digit iGaming growth and strong sports betting revenue increase point to similar benefits. BetMGM, historically a major iGaming operator, remains highly relevant despite the September decline in casino revenue.
The state’s newer and expanding brands also illustrate why iGaming licenses remain strategically valuable. Hard Rock Bet logged $19.4 million in iGaming revenue, while Bet365 recorded $6.6 million. Fanatics’ sharp increase suggests that cross-selling between sportsbook customers and casino users is becoming a more important growth lever. In mature markets, that may matter more than short-term sports betting handle share.
Michigan’s September results therefore frame a wider industry shift. The most important numbers are no longer just handle totals. Hold percentage, promotional efficiency, iGaming scale and operator mix increasingly define market performance. For investors and regulators, the state offers a mature-market snapshot: Revenue can rise quickly when operators combine disciplined promotions with favorable sports betting margins and a large online casino base.
