A potential Boyd Gaming and Flutter joint buyout of PENN Entertainment would have major ramifications in the Michigan gambling space according to a PlayMichigan analysis. Should it happen, Flutter, which operates a FanDuel sportsbook and online casino in the Great Lakes State, would be the unquestioned market leader in both categories.
One possible deal has Boyd Gaming owning Hollywood Casino at Greektown, while Flutter would both control ESPN BET and its Hollywood online casino.
Let’s examine that potential deal further.
According to Michigan law, Flutter is allowed to operate two different online brands.
If the acquisition — as first reported by The Deal, according to an Earnings+More newsletter earlier this week — goes through, it would put Flutter in a league of its own in terms of online gambling market share in Michigan.
Flutter would have stranglehold as Michigan’s #1 online casino with 29% of the market
FanDuel Casino Michigan has grown its product dramatically over the last several months. So much so, the operator surpassed BetMGM for the first time ever last March. After holding the lead in March and April, BetMGM reclaimed the top online casino spot in May.
FanDuel and BetMGM are poised for a heavyweight fight throughout the second half of the year.
However, should it be part of the deal to acquire PENN, Flutter would gain control of the Hollywood online casino. It would then be considered the top iGaming company among the 15 Michigan online casinos.
In the months where FanDuel finished behind BetMGM (January, February, May), the addition of Hollywood casino would have put the Flutter brand over the top in each of those months.
BetMGM and FanDuel have reached 26.1% and 25.7% market share, respectively, in 2024, through May.
FanDuel’s 26.1% share of the total Michigan online casino market in 2024 is worth $251.15 million in revenue.
The Hollywood online casino has a market share of 2.5% in Michigan in 2024 thanks to revenue of $24.7 million.
Adding the Hollywood casino to FanDuel would mean Flutter would command at least 28.6% of the Michigan market, worth $275.85 million.
Deal would give Flutter 46% of the sports betting market in MI
FanDuel Sportsbook Michigan has already become the first operator to cross $5 billion in lifetime handle. It has led the state for 29 straight months.
FanDuel has collected a total of $855.3 million in total bets, so far in 2024, which is good for 37.4% market share. To put that in perspective, DraftKings, the No. 2 sportsbook operator, has 26.9% of the market this year.
As evidence shows, FanDuel commands the sports betting market in Michigan. ESPN BET’s market share has faltered in each month since launching last November. However, its YTD market share percentage is 8.5%.
The addition of ESPN BET to Flutter’s portfolio would mean Flutter would own nearly 46% of the overall handle in Michigan. For instance, both FanDuel and ESPN BET posted their best months in January. Putting the two together during that month would have generated $285.1 million in handle and 47.4% market share, a tick better than the 2024 average.
Flutter, with the combination of FanDuel and ESPN BET, would have already generated nearly $1.1 billion in handle through five months.
It would also mean Flutter would be in control of two of the top four Michigan online sportsbooks.
Purchase would already have added $35.3 million to Flutter’s bottom line in Michigan alone
To line up better with the online casino figures — which are best reported in terms of revenue not handle — PlayMichigan also looked at sports betting revenue.
In 2024, so far, FanDuel’s online sports betting revenue in Michigan is $100.7 million, while ESPN BET had online revenue of $10.6 million
Now, let’s combine online casinos and sportsbook revenue. Had Flutter acquired PENN before the start of 2024, it would have meant $35.3 million more revenue for Flutter in Michigan alone, so far this year.
And that’s not accounting for the probability that Flutter could grow the revenue of both ESPN BET and the Hollywood online casino.
Flutter would likely improve fortunes of Hollywood online casino and ESPN BET
There is no denying that FanDuel has the better product over ESPN BET. And, the EKG Line newsletter believes ESPN could be improved under the Flutter umbrella.
“In our view, Flutter could reasonably expect to fix these issues — especially SGP [same gam parlays], a category FanDuel dominates — and improve ESPN Bet’s U.S. OSB GGR market share from its current ~3% level (our estimate),” the newsletter said.
How Flutter can legally operate two brands in Michigan
For those wondering how Flutter could operate two separate gambling sites, operators are allowed to launch two different brands, according to Michigan’s Lawful Internet Gaming Act and Lawful Sports Betting Act, which states:
“(7) An internet gaming operator may offer internet gaming under a maximum of 2 separate brands, 1 for each of interactive poker and other casino style games. This subsection does not prohibit an internet gaming operator from using fewer than 2 brands or from using a single brand to offer any combination of interactive poker or other casino style games. Only an internet gaming operator or its internet gaming platform providers may process, accept, or solicit internet wagers under this act.
All websites and corresponding applications used to offer internet gaming must clearly display the brand of the internet gaming operator or its affiliate. The internet gaming operator may also elect, in its sole discretion, to have the brand of each internet gaming platform that it utilizes be the name and logos or no more than 1 internet gaming platform provider if the internet gaming platform also clearly displays the internet gaming operator’s own trademarks and logos or those of an affiliate. The internet gaming operator is responsible for the conduct of its internet gaming platform provider.”
Caesars is taking advantage of the opportunity after it completed the acquisition of WynnBet’s sports betting license last month. It plans to launch another skin. Eric Hession is the President of Caesars Sports & Online. He said in May the new brand is expected “before the end of the year, pending regulatory approval.”
Already running Caesars Palace, PlayMichigan handicapped new brands Caesars could unveil, which include:
- Harrah’s
- Tropicana
- Horseshoe
- Eldorado
- Flamingo, Planet Hollywood
- Isle
After going through regulatory processes with the Michigan Gaming Control Board, FanDuel could opt to keep the Hollywood brand, or use a different one.
For now, there are lots of dominos to fall before a deal gets done — if it does.
