Michigan is a "No. 1 seed for online growth" in sports betting and iGaming, BofA Securities analyst Shaun Kelley said Monday. 

After a strong 10-day launch in January, online sports betting and iGaming in Michigan showed no signs of slowing down, the analyst said in an update on winners and losers from the first full month of operations in the Great Lakes State. 

BofA's Takeaways On Michigan Gaming: iGaming was particularly strong, with the GGR/day rate little changed and on pace for over $1 billion annually, Kelley said, adding that this would be ahead of the iGaming record set by New Jersey in 2020.

February was particularly promotional, the analyst said. In Michigan, 10 of the 12 operators reported negative net revenue, he said. 

"Michigan remains the most exciting state in this vertical."

Related Link: One Month In, Michigan’s Sports Betting Market Is Already A Big Boon For Casinos

Winners And Losers: Barstool Sportsbook from Penn National Gaming (NASDAQ:PENN) saw its market share take a dip in February, going from 24% to 13%.

The company was one of two to report positive net revenue in the month of February, Kelley said. 

The company also launched its iGaming in Michigan recently and has a 7% market share.

BetMGM, a 50% joint venture from MGM Resorts International (NYSE:MGM), was the winner in February, jumping to the No. 2 position in Michigan for sports betting and maintaining its iGaming leadership, he said. 

The company had 25% market share in online sports betting and 34% in iGaming, Kelley said. 

MGM has performed particularly well in new markets like Colorado, Tennessee and Michigan, the analyst said.

“We came away from our Online Field Trip particularly impressed with BetMGM CEO Adam Greenblatt.”

DraftKings Inc (NASDAQ:DKNG) saw its duopoly with FanDuel fall to third for market share for online sports betting in Michigan in February.

Kelley is unconcerned and said the company has significant share in all the states BofA monitors.

DraftKings also has some upside in iGaming, the analyst said. 

DKNG, MGM, PENN Price Action: DraftKings shares were trading slightly higher at $72.01 at last check. MGM shares were down 1.62% at $39.38. Penn National shares were down 2.26% at $114.72.