Could Hard Rock’s takeover of the SI online sportsbook in Michigan elevate it among the top sports betting operators in the state?
That’s a tall order considering SI currently ranks 10th out of 15 Michigan online sportsbooks ranked by lifetime handle — $5 billion behind FanDuel, $4 billion behind DraftKings and $3.1 billion behind BetMGM — and was an even worse 12th in May.
SI only had total lifetime handle of $52.5 million in Michigan through May. FanDuel holds the all-time Michigan sports betting lead with $5.1 billion.
So, why even mention the possibility of Hard Rock making a huge impact in Michigan? It stems from the brand jumping up to fifth nationally among sportsbooks, according to the latest Eilers & Krejcik Gaming’s estimates as reported this morning by Steve Ruddock’s Straight to the Point newsletter.
Hard Rock now has a 5% share of the national sports betting market. It is close to passing Caesars in fourth place and is within one percentage point of BetMGM in third. EKG estimates Hard Rock will pass BetMGM this year.
The reason? Hard Rock has a monopoly on legal sports betting in Florida, which is the third most populous state in the nation (22.6 million) behind only California (39 million) and Texas (30.5 million).
Hard Rock fifth biggest sportsbook in America before launching in Michigan
It’s important to note that Hard Rock is currently fifth in the nation before it even launches in Michigan, one of the most lucrative and important online gambling states in the union.
Hard Rock is expected to arrive in the Great Lakes State before the end of 2024. In March, Hard Rock purchased the US assets of 888 Holdings, the company that runs the SI sportsbook and online casino in Michigan.
In May, Evoke (formerly 888 Holdings), told PlayMichigan SI was planning to exit the state before the end of 2024.
That opens the door for Hard Rock to come to Michigan, pending approval from the Michigan Gaming Control Board.
Michigan is clearly key to EKG’s estimates that Hard Rock could grow to be third in the US before year’s end.
Hard Rock won’t beat Michigan’s Big 3, but it could be among the second tier
When and if it does, Hard Rock isn’t likely to take much of a bite out of the lifetime leaders in Michigan sports betting. But, it could very well work its way into the second tier of operators currently home to ESPN BET, Caesars, Fanatics and BetRivers.
In May, Michigan’s Big 3 of FanDuel, DraftKings and BetMGM had sports betting handle of $126.8 million, $104.5 million and $50 million, respectively.
Fourth, through seventh place was as follows:
- ESPN BET — $25 million
- Caesars — $19.3 million
- Fanatics — $14.2 million
- BetRivers — $9.3 million
There was a significant drop off to the Eagle and FireKeepers brands — $2.5 million and $1.2 million, respectively — in eighth and ninth place. But even those figures were significantly better than the SI sportsbook which was 12th in Michigan in May with handle of $445,580.
Do we expect Hard Rock to do better than that in Michigan once it launches? Absolutely. The SI brand never gained serious traction.
Will Hard Rock seriously challenge the perennial top dogs? Time will tell.
After all, Michigan is a mature sports betting market with proven leaders.
