DraftKings crossed a huge milestone in June when the Michigan Gaming Control Board released online casino revenue. It became the third operator to surpass the $1 billion threshold for lifetime revenue. However, it was the third straight month DraftKings’ earnings declined.
DraftKings Casino Michigan is still solidly among the big three in Michigan with BetMGM and FanDuel. But it is slightly alarming to see the DraftKing’s market share dip in recent months.
It’s also possible that DraftKings is redirecting users to its other product in the state, Golden Nugget, which produced its best month of the year in June.
DraftKings celebrates a lofty Michigan milestone
If it was easy, everyone would do it, right? Only three platforms in the Great Lakes State can say they generated more than $1 billion in lifetime Michigan online casino revenue. DraftKings became the latest to join the club last month.
BetMGM and FanDuel lead the market, recording revenue of $1.9 billion and $1.1 billion, respectively, all-time.
DraftKings has a strong foothold on the third spot, both on a monthly basis, as well in lifetime. In June, it had revenue of $32.5 million. BetRivers, the next closest operator, posted $12.3 million.
BetRivers also trails DraftKings in lifetime revenue by more than $650 million.
It’s clear that DraftKings has solidified a spot in the top three among Michigan online casinos, but has a long way to go before running down the market leaders.
Market share losses despite huge milestone
Revenue does not share the full story, however, DraftKings has continually dipped in recent months. Here is the operator’s revenue results this year:
- January: $36.3 million
- February: $36.9 million
- March: $40.4 million
- April: $38.5 million
- May: $34.9 million
- June: $32.5 million
Determining market share paints a better picture on where DraftKings stands within the state. It started the year at 20% and has dropped to 17.6% and 17.7% in May and June, respectively.
DraftKings market share decreases, Golden Nugget’s increases
DraftKings acquired Golden Nugget back in 2022 with the intention of expanding its portfolio, along with being able to operate multiple platforms in select states.
Golden Nugget Casino Michigan is considered to be a strong brand, not only in Michigan, but nationally, too. The operator has displayed heavy volatility this year year. However, Golden Nugget has had its best months, revenue-wise, in May and June:
- January: $6.8 million
- February: $4.6 million
- March: $7.7 million
- April: $2.9 million
- May: $8.7 million
- June: $8.8 million
As expected, market share has been all over the place for Golden Nugget. It started out the year at 3.7% and got as low as 1.5% in April. In May and June, the operator recorded 4.4% and 4.5% market share, respectively.
Perhaps DraftKings directing more users to Golden Nugget is a potential reason for the differing results of each operator.
Four operators lead Michigan online casino market
The combination of DraftKings and Golden Nugget still do not equate to the market share of BetMGM or FanDuel. However, the two operators make for a dynamic duo in the Great Lakes State.
The four operators make up the lion’s share of the of the revenue in Michigan, accounting for the following combined percentage of the entire market:
- January: 74.7%
- February: 75.5%
- March: 74.6%
- April: 73.5%
- May: 74.4%
- June: 73.8%
It’s possible that having a second brand in the state is slightly hurting DraftKings’ revenue. However, it’s not in bad position by any means.
