How FanDuel Surpassed BetMGM As Online Casino Leader In Michigan

Written By Corey Sharp on April 18, 2024 - Last Updated on April 19, 2024
Race car with a FanDuel logo on its hood passes another car. FanDuel invested in promo spend to achieve strong customer retention and overtake BetMGM as the top online casino operator in Michigan.

For the first time in the history of Michigan online casinos, FanDuel dethroned BetMGM as the top operator in the state. BetMGM had been market leader in the Great Lakes State for 39 straight months.

In March, FanDuel Casino Michigan produced $57.6 million in revenue, beating out BetMGM’s $54.7 million.

For those of us closely following the market share race in Michigan, it seemed only a matter of time before FD ultimately caught BetMGM. FanDuel’s online casino platform had been gaining steam, not only in Michigan, but across other states, too.

From our view, there are a couple clear reasons we can point to for why there’s a new iGaming market leader in the Great Lakes State.

FanDuel goes all in on promotional spending

February revenue showed us that FanDuel had begun distancing itself from DraftKings while running down BetMGM for the market lead. So we weren’t shocked when FD completed the mission in March as the state’s No. 1 online casino.

To help them claim that top spot, FanDuel committed to promo spend. It’s not a coincidence that the first month FanDuel topped BetMGM in revenue, it beat them out in promotional spending, too.

March showed FanDuel spending $5.8 million in promotions, compared to BetMGM’s $4.6 million. FanDuel had never crossed $5 million in promo spend before.

Back in January of 2023, when BetMGM reigned supreme over other Michigan online casinos, it also invested the most in promotions. That month, BetMGM tallied $5.3 million in promo spend, which led to $52.8 million in revenue. FanDuel distributed $2.9 million in promos, which yielded $28.9 million in revenue.

While BetMGM’s pattern mostly stayed the same, FD beefed up its marketing. It spent $3.5 million for the first time last September, and upped it to $4.4 million in November.

In February, FanDuel spent $4.8 million in promos, while sitting about $2 million behind BetMGM in revenue.

In March, all that promo spend paid off with the reward of Michigan market leader.

The plan also seems to be working nationwide. PlayUSA reported “FanDuel-operated casino sites across all states increased their monthly total by $70 million from March 2023 to March 2024. That accounts for almost half of the total annual growth for the US market over that period.”

FanDuel’s iGaming investments pay off in customer retention over time

Sustainability is an important goal for any gambling company, but especially for those competing in the online casino space. FanDuel has invested heavily in its product and its customers, and is reaping the benefits in the form of retention.

Flutter, owner of FanDuel, reported in a Q1 2023 financial statement that its Average Monthly Players (AMPs) improved 30%.

The trend continued throughout 2023, where Flutter increased AMPs by 33%, leading to 49% growth in iGaming revenue last August.

In January, The EKG Line newsletter from Eilers & Krejcik Gaming reported that FanDuel had delivered better retention rates than competitors such as DraftKings and BetMGM. Over a 60-day period before the end of 2023, retention rates from top iGaming operators were:

  • FanDuel: 5%
  • BetMGM: 4%
  • DraftKings: 2%

The EKG Line used information from Sensor Tower, a data intelligence and analytics company, to determine retention rates from the standalone casino apps.

The next order of business for FanDuel is to keep its top spot. While that is no small feat in a competitive iGaming market such as Michigan, FD has made it clear they are not afraid to invest in their iGaming product and customers.

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Corey Sharp

Corey Sharp joined Catena Media in 2022 and is the go-to expert for Michigan gambling. Born and raised in Philadelphia, PA, he previously worked for the Philadelphia Inquirer and NBC Sports Philadelphia as a sports journalist and content producer. In Corey’s role as Lead Writer for PlayMichigan, he works alongside a talented team of expert journalists and analysts to bring you the most comprehensive and accurate coverage of gambling news in Michigan. Corey’s contacts around the industry makes him a trusted source. Corey produces daily stories and features about the gambling space. Corey graduated from Holy Family University in Philadelphia with a bachelor’s degree in sports management.

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