Michigan Betting Surge Tied to Football Success and Promos
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SportsTranscript
00:00 (upbeat music)
00:02 - Now we, you know, obviously move to a state
00:04 where there's been a ton of football success.
00:06 The Detroit Lions have had a good football season,
00:09 the University of Michigan,
00:10 clearly right back in the thick of it
00:13 in terms of the national championship.
00:14 So I guess it should be no surprise
00:16 that one event could correlate another
00:19 and both teams doing well.
00:21 Let's get the very latest update
00:22 with gross revenue in Michigan.
00:25 And my guess is because of those things,
00:27 I don't know if you feel they're tied together, Jim,
00:29 but it does seem to be correlated when teams do well,
00:32 people get excited, they wanna bet on their team.
00:35 - Yeah, we see that in markets all across the country.
00:39 And, you know, I know we've spoken a fair bit about that,
00:43 you know, in certain instances,
00:46 when the Denver Nuggets won the NBA finals,
00:49 when the Vegas Golden Knights won the Stanley Cup,
00:52 you know, those respective states see an influx of betting.
00:58 And in Michigan, in September,
01:01 we saw the sportsbooks unload really
01:06 the amount of promotional play
01:09 and then the subsequent deductions
01:11 that they're able to take from their gross revenue.
01:14 They reached near record levels,
01:15 you know, around $25 million there for the month.
01:18 DraftKings led the way, you know,
01:20 outspending the competition there.
01:23 And their promotional offering, you know,
01:27 and that's the bet credits, the free bets, the odds boosts,
01:32 you name it, that all falls
01:33 under that promotional play umbrella.
01:37 Their promotional offerings were upwards of 80%
01:41 of their overall revenue.
01:43 So certainly a large ratio for DraftKings.
01:47 And we've seen that across the country
01:51 over the last handful of months.
01:53 They've been gathering that market share of handle
01:58 behind a lot of this promotional offering.
02:02 And it's making up a large chunk of their revenue figures.
02:06 In addition to Michigan,
02:10 we saw Pennsylvania in September
02:13 and Maryland in September as well.
02:15 Sportsbooks and the operators there
02:18 spending a fair bit on promotional play.
02:22 Like you said, it makes sense, right?
02:24 In Michigan, you have the Michigan Wolverines
02:28 having a high quality season,
02:30 Detroit Lions, a lot of excitement back there.
02:32 So that's going to, you know, increase the betting.
02:35 And of course, these operators want to capitalize on that
02:39 as the football season, you know, begins
02:43 and then ramps up through the month of September.
02:45 So really no surprise that in Michigan,
02:49 the operators were handing out promos left and right.
02:53 So certainly something to keep tabs on
02:56 as we go through the remainder of football season,
02:59 as we see, you know, how things progress
03:01 once those reports come out for October, November,
03:05 and so on, just to see how that level of promotional play
03:09 keeps up throughout the year.
03:12 (upbeat music)
03:14 (bells chiming)