Sports Illustrated to Exit Michigan Online Casino Market by End of 2024

Sports Illustrated (SI), a well-known magazine brand, is set to exit the Michigan online casino market by the end of 2024. This development follows the termination of its contract with Evoke, previously known as 888 Holdings, in March of this year.

Evoke, which rebranded from 888 Holdings, announced its decision to withdraw Sports Illustrated's operations from Michigan after evaluating the brand's performance in the market. A spokesperson from Evoke informed PlayMichigan of their plans, stating, “We’re currently planning our transition out of Michigan and aiming towards completion in Q4 of this year, subject to regulatory approvals. Until then, we remain very much open for business and committed to delivering fantastic betting and gaming experiences for players in the state.”

Key Points

• Sports Illustrated, a prominent magazine brand, is set to exit the Michigan online casino market by the end of 2024, marking a significant shift in the landscape of online gambling in the state.
• The decision to terminate Sports Illustrated's operations in Michigan comes from Evoke, formerly known as 888 Holdings, due to consistently poor revenue performance in the market.
• This move leaves a vacant spot in Michigan's online casino market, creating opportunities for new operators to enter and potentially reshape the competitive landscape of the industry.

Sports Illustrated entered the Michigan online casino market in February 2022, becoming the 15th operator in the state. It filled the spot vacated by TwinSpires, which exited in 2021. However, the brand struggled to gain traction, consistently posting the lowest revenue figures among Michigan's iGaming operators.

From April 2023 to March 2024, TwinSpires/SI Casino posted the poorest revenue results, peaking at $1.8 million in March 2024. In April 2024, SI Casino recorded its lowest output of the year, generating only $1.21 million. In comparison, leading operators like FanDuel, BetMGM, and DraftKings reported significantly higher revenues, with FanDuel topping the list at $50.70 million. This substantial disparity in revenue performance highlighted the challenges SI faced in the competitive Michigan market.

The departure of Sports Illustrated will reduce the number of online casino operators in Michigan to 14, leaving one available slot in the market. The Michigan Gaming Control Board (MGCB) enforces a maximum of 15 online casino licenses, aligning with the number of retail casino partners in the state. This vacant spot opens opportunities for new operators to enter the market and potentially reshape the competitive landscape.

One potential candidate to fill the vacant slot is Hard Rock, which announced the acquisition of 888 Holdings' US assets in March. Additionally, 888 Holdings has been scaling back its operations in the US, including the planned closures of 888Casino and 888Poker in New Jersey, as well as the SI Sportsbook operations in Michigan, Colorado, and Virginia. These strategic decisions indicate a broader shift in 888 Holdings' approach to the US market, focusing on optimizing their resources and operations.

The departure of Sports Illustrated from the Michigan online casino market underscores the competitive nature of the iGaming industry and the challenges new entrants face in establishing a foothold. As SI prepares to exit by the end of 2024, the market remains dynamic, with the potential for new operators to emerge and reshape the landscape. This transition period will be closely watched by industry analysts and competitors, as the entry of a new operator could influence market dynamics and consumer preferences. The evolution of Michigan's online casino market will likely continue to reflect broader trends and shifts within the iGaming sector at large.