Michigan Sports Betting Revenue, Handle and Taxes
Michigan Gambling Trends
Michigan Sports Betting Data
| Month | Handle | Handle Per Capita | Revenue | Hold | Taxes |
| December 2023 | $613,425,699 | $89 | $65,920,318 | 10.7% | $4,021,700 |
| November 2023 | $584,142,443 | $84 | $37,043,266 | 6.3% | $1,180,415 |
| October 2023 | $551,127,024 | $80 | $46,135,708 | 8.4% | $2,537,783 |
| September 2023 | $457,695,679 | $66 | $43,986,328 | 9.6% | $1,721,480 |
| August 2023 | $228,495,763 | $33 | $23,480,419 | 10.3% | $1,472,826 |
| July 2023 | $235,996,767 | $34 | $17,928,415 | 7.6% | $825,756 |
| May 2023 | $305,275,755 | $44 | $36,125,966 | 11.8% | $2,152,149 |
| April 2023 | $338,127,853 | $49 | $36,275,215 | 10.7% | $2,324,351 |
| March 2023 | $421,666,037 | $61 | $46,016,812 | 10.9% | $2,900,149 |
| February 2023 | $357,161,200 | $52 | $23,134,728 | 6.5% | $959,332 |
Michigan Sports Betting Revenue
When Michigan Governor Christine Whitmer signed a bill legalizing sports betting on December 20, 2019, one of the biggest states in America joined the fray. In-person sports betting followed in March 2020 and online sports betting launched in the Wolverine State on January 22, 2021.
There are now 15 online sportsbooks and more than a dozen retail sites available for Michigan residents to bet with. Michigan is the home of the Detroit Pistons, Lions, Red Wings and Tigers. When you add in colleges like Michigan, Michigan State and a host of other DI schools, state residents have plenty of teams to root for and bet on.
Michigan sports betting revenue from March 2020 to June 2023 is over $949 million. Meanwhile Michigan sports betting handle surpassed $4.8 billion in 2022 and Michigan sports betting handle for 2023 through June is over $2.1 billion. The total Michigan sports betting handle has surpassed $11 billion. Michigan is in the top 10 states in terms of betting volume.
Having several pro sports franchises in the state, as well as rabid fan bases for multiple colleges, helps with consistent betting interest. All of the sports betting industry’s leaders are present in the state as well, including DraftKings, FanDuel, Caesars and BetMGM.
Below, we discuss Michigan sports betting taxes and detail Michigan sports betting revenue and Michigan sports betting hold to show you how the state has fared financially since it legalized sports betting.
Michigan Sports Betting Taxes
Sports betting taxes are of great importance to bettors, who obviously want to keep as much of their winnings as possible. The MI sports betting tax rate currently stands at 8.4% on operator sports betting revenues. This is one of the lowest tax rate percentages in the country. Only Iowa, Nevada and Tennessee have lower tax rates. The Michigan sports betting tax rate is well below the national average of 19%.
Michigan sports betting taxes have generated more than $48 million to date. As long as the Michigan sports betting tax rate stays at competitive levels, Michigan bettors will continue to generate significant revenue for Michigan sports betting taxes. This also means that Michigan sports betting revenue has consistently been healthy since the trade was legalized.
Michigan Sports Betting Handle
Sports betting handle refers to the total amount of money that has been wagered by a specific population. Nationally, people are betting regularly on sports. The sports betting handle for the entire country in 2022 was over $93.7 billion, which was more than $36 billion more than 2021. The national 2023 sports betting handle through May was already at $40 billion. Sports betting continues to grow and grow and Michigan sports betting revenue by state is impressive.
The most recent Michigan sports betting handle came in at just under $236 million for June 2023. That was nearly $70 million lower than May 2023, and nearly $57 million lower than June 2022. Michigan sports betting handle for 2022 was $4.8 billion. The summer months were the lowest for Michigan in 2022 as well. The state averaged more than $401 million a month in Michigan sports betting handle in 2022, but only averaged $249 million in the months of June, July and August. That is a fairly common trend throughout the United States with no football or basketball games the majority of that time period. It doesn’t help that the Detroit Tigers have not had a winning season since 2016 and have not made the playoffs since 2014.
Michigan Sports Betting Handle Per Capita
Michigan is currently the 10th-largest state in terms of population with just over 10 million residents. The Michigan sports betting handle per capita in 2022 was $481, placing it 15th overall. Per capita in this sense is the annual sports betting handle of a state divided by that state’s population.
Only New York, Pennsylvania and Illinois had a higher sports handle per capita than Michigan as far as states that have a higher population.
Michigan Sports Betting Hold
Sports betting hold is defined as the percentage of money that a sportsbook keeps for every dollar wagered by users. For example, if a sportsbook has a monthly handle of $10 million and a revenue of $2 million, that means they paid out $8 million in winnings. That also means that the hold would be 20%.
Through six months of 2023, the Michigan sports betting hold percentage is 9.08%, which is up .38% from the 2022 average. The Michigan sports betting hold is almost identical to the 9.05% national sports betting hold average. Michigan sports betting hold percentage was significantly higher than the national average in 2022, as the state posted an 8.7% holding percentage for the year, which was .60% higher than the national average.
FAQs
Yes, Michigan sports betting taxes are imposed on all Michigan residents who participate in and win in sports betting. They have to pay the Michigan sports betting tax rate of 8.4% on all winnings.
The Michigan sports betting handle for the first six months of 2023 totals $2,149,104,580 for an average of $358,184,096 per month.
The Michigan sports betting hold through the first six months of 2023 is 9.08%. The Michigan sports betting hold for all of 2022 was 8.7%. Both of these percentages are higher than the national average for the same time periods.
Michigan sports betting revenue has surpassed $949,712,976 to date.
Thanks to Michigan sports betting taxes and an extremely competitive Michigan sports betting tax rate of 8.4%, the state has made more than $48 million since the launch of legalized sports betting in the state.