Online sports betting win, handle and hold erupt in Michigan in May
Sports betting revenues in Michigan catapulted 51% higher in May, reaching US$77.5 million. Handle also surged, up 18% to US$468 million.
Taken together, the numbers implied an unusually high hold rate of 16.7%. Promotional allowances grew exponentially, going from 3.6% of handle in May 2025 to 11.5% in 2026.
One wild card in the equation was Bet365, which had debuted in mid-April. During May, it captured 14% of handle, of which 57% was promotional play.
Bet365’s presence skewed the final May numbers. Without it, handle only rose 1% and promotional outlays were 3.8% of handle.
Although DraftKings ceded market share, as did FanDuel, it did not quite catch its primary rival. FanDuel ended the month with US$134.3 million in winnings to DraftKings’ US$121.5 million. The latter held at 12.3% to FanDuel’s 17.3%, while FanDuel promoted at an above-average 4.5%. DraftKings, however, grew win 12.3% while FanDuel remained flat.
Despite the heavy amount of promotional play, Bet365 muscled its way into third place with US$66.8 million in win, almost doubling its April haul of US$35.2 million.
Displaced from its traditional third place, BetMGM reported US$47.3 million in revenue. Its revenue fell 12%, though it held at 13.9%.
Fanatics Sportsbook made US$38.8 million, growing revenue 26%. Caesars Sportsbook reported US$17.9 million in winnings, an 18% increase on 27% less handle. It held 8.9% of wagers.
ESPN Bet successor theScore Bet came in with US$14 million. BetRivers saw win of US$6.5 million, as revenue leapt 23% off 9% less hold. It held 11.4% of monies wagered.
BetRivers enjoyed a 35% increase in igaming win, outpacing FanDuel’s 14% growth. The former had 8% market share to the latter’s 25%. BetRivers realized US$24 million in winnings.
FanDuel, however, led all comers with US$77.4 million in igaming winnings. BetMGM was its closest competitor with US$64.3 million, a 5% decline from May 2025.
Slipping 3%, DraftKings ended May with US$45.9 million in icasino revenue. Caesars Digital gained a point and realized US$19.5 million in revenue. Hollywood Casino was up 4% for win of US$7.4 million. Six other operators combined for US$14.7 million.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
Verticals:
Sectors:
Topics:
Dig Deeper
Related stories
The Backstory
Michigan’s May surge fits a wider volatility pattern
Michigan’s May sports betting results stood out less for steady market growth than for the way a single entrant reshaped the state’s headline numbers. Online sports betting win jumped 51% to US$77.5 million on an 18% increase in handle to US$468 million, producing a 16.7% hold that would be exceptional in almost any mature U.S. market. The sharp move came as Bet365, newly live in mid-April, quickly captured meaningful volume through heavy promotional activity.
That dynamic underscores a recurring feature of U.S. online betting: monthly revenue can swing sharply when hold rates, promotional spending or operator launches distort the underlying trend. Michigan’s results looked robust at the surface, but without Bet365, handle rose only 1% and promotional allowances were far closer to normal levels. The state’s May report therefore points to both genuine competitive intensity and a less flattering reality for incumbents: growth is increasingly expensive to buy.
Promotions remain the tax on market share
Promotional spending has become one of the clearest dividing lines between operators defending scale and challengers trying to force their way into the top tier. In Michigan, promotional allowances rose from 3.6% of handle in May 2025 to 11.5% in May 2026, with Bet365 accounting for much of the shift. More than half of Bet365’s handle was promotional play, helping it move into third place but also making its apparent momentum harder to compare with operators relying less heavily on free bets and credits.
Other state reports show the same tension, even when promotions are not the headline. In Iowa, online sportsbooks generated US$203.5 million in February handle, essentially flat from the prior year, while net receipts rose to US$20.9 million. DraftKings’ handle declined year over year but its net receipts increased, a reminder that profitability can improve even when wager volume stagnates if hold and promotional efficiency cooperate.
Indiana showed a similar split between handle leadership and revenue performance. DraftKings remained the state’s largest sportsbook by handle, but FanDuel generated more gross revenue for a second straight February despite taking fewer wagers. The Indiana Gaming Commission reported US$423.8 million in online handle, up more than 6% year over year, yet the more important competitive signal was that market share by handle did not translate neatly into market share by revenue.
Hold rates can mask the health of a sportsbook
Michigan’s 16.7% May hold was unusually high, and that figure materially boosted the revenue picture. But hold is often the least predictable component in a monthly report. A favorable calendar, parlay outcomes or bettor losses in particular sports can inflate revenue without indicating that the customer base has expanded or that an operator has strengthened its long-term position.
Oregon offers a useful comparison because the market is simpler: DraftKings is the exclusive online sports betting provider. In May, DraftKings held 12.6% in Oregon but still saw win decline 5.1% to US$9.8 million as handle fell 3.7% to US$77.6 million. Parlays were especially profitable, with a 24.4% hold, but even that could not fully offset weaker wagering volume. The lesson for Michigan is that a high hold can flatter the month without resolving questions about sustainable demand.
New Hampshire’s December results made the same point from another direction. The state’s online sports betting handle exceeded US$71 million, down modestly from November, but gross gaming revenue fell sharply to US$5.8 million from US$10.2 million. A small move in handle produced a much larger drop in revenue and state share, illustrating why regulators and operators look beyond handle when judging the strength of a market.
DraftKings and FanDuel face a two-front battle
Michigan’s May results show how DraftKings and FanDuel remain the benchmarks even when new entrants command attention. FanDuel led the month in sports betting winnings, while DraftKings posted revenue growth and remained close behind. Yet both ceded some share as Bet365 used promotions to build position rapidly. In a market where the top two have long benefited from scale, brand recognition and product depth, aggressive challengers can still disrupt the monthly table if they are willing to spend.
The pressure is not limited to traditional sportsbooks. Prediction markets have emerged as a regulatory and strategic threat because they could blur the boundary between sports wagering and federally regulated financial contracts. A New Jersey court fight over Kalshi’s sports event contracts has drawn close attention from gaming investors and operators. Jefferies analyst David Katz argued that a resolution in the Kalshi case could benefit DraftKings and FanDuel by reducing uncertainty, even if the ruling permits some form of sports-related contracts to continue.
The stakes are clear. If prediction markets can offer sports products outside state gaming frameworks, incumbents face a potential competitor not bound by the same licensing, taxation and promotional rules. If courts impose guardrails, established sportsbooks could benefit from regulatory clarity and their existing advantages in customer acquisition, risk management and product development. Michigan’s competitive reshuffling therefore comes at a time when the definition of a sports betting competitor may itself be changing.
iGaming gives Michigan a second growth engine
Michigan’s online casino results add another layer to the May story. Unlike sports betting, iGaming revenue is less dependent on game outcomes and seasonal sports calendars. FanDuel, BetMGM, DraftKings, Caesars Digital and BetRivers all operate in a vertical that can produce steadier revenue and deeper customer engagement. In May, FanDuel led the iGaming market, BetMGM remained a major competitor despite a decline and BetRivers posted strong growth that outpaced FanDuel’s percentage gain.
That matters because operators increasingly evaluate states by total digital wallet opportunity rather than sportsbook handle alone. A sports bettor acquired through promotions may later be cross-sold into casino, where margins and frequency can be more attractive. Bet365’s Michigan push, though costly on the sports side, may be viewed through that broader lens if it can convert a share of promotional sports customers into recurring casino users.
For incumbents, the challenge is to defend both verticals without allowing promotional spending to erode the value of the customer base. BetMGM’s strength in iCasino can help offset sports betting pressure, while FanDuel’s leadership across both categories reinforces its position. DraftKings’ softer iCasino month in Michigan shows the risk of being squeezed in a market where competitors can attack from multiple angles.
The stakes for regulators and operators
Michigan’s May report will likely be read by operators as a case study in how quickly market share can be purchased and how difficult it is to interpret headline growth. Regulators will see a different set of issues: higher promotional allowances can reduce taxable revenue, while high hold months can temporarily boost receipts. The balance matters in states that rely on online betting and casino taxes as recurring budget contributors.
The broader U.S. market suggests mature states are entering a phase defined less by legalization momentum and more by competitive optimization. Iowa and Indiana show that leading operators can trade handle share and revenue share month to month. Oregon shows that a strong hold does not guarantee growth. New Hampshire shows how tax receipts can swing with revenue even when handle remains substantial. The New Jersey litigation shows that the regulatory perimeter may still shift.
Michigan sits at the center of those forces. Its May numbers were impressive, but they were also highly contingent on Bet365’s promotional arrival and an unusually favorable hold. The next test is whether that activity converts into lasting market share, whether incumbents respond with more spending and whether iGaming can absorb the cost of sportsbook competition. The answer will determine whether May was the start of a new competitive order or simply an expensive month in a mature market.
