The Michigan Gaming Control Board has authorized online sports betting and online gambling in the state, effective later today. The launch will come just over a year after the bill to legalize online gambling in Michigan was signed by Governor Gretchen Whitmer in 2019. Throughout 2020, regulators worked tirelessly to formulate policies and laws regarding the new online platforms.
Even though sports betting in Michigan was legalized in March 2019, wagers could only be placed in person at retail sportsbooks. Now that a new era of gambling has dawned on the state, online sports betting and gambling will be considered legal from Friday, January 22, 2021.
According to the Executive Director of the MGCB, the days between the endorsement on Tuesday and the launch on Friday will be to provide operators with ample time to test-run the online platforms and make adjustments, if necessary.
Nine retail operators are expected to go live by noon. This means that wagers can now be placed right from the comfort of your home, from your preferred mobile device and desktop devices. The authorized operators and their casino partners include:
- William Hill Grand/ Traverse Band of Ottawa and Chippewa Indians
- BetMGM/ MGM Grand Detroit
- FanDuel/ MotorCity Casino
- DraftKings/ Bay Mills Indian Community
- Golden Nugget/ Keweenaw Bay Indian Community
- Wynn/ Sault Ste. Marie Tribe of Chippewa Indians
- TwinSpires/ Hannahville Indian Community
- Penn Sports Interactive/Barstool Sportsbook Greektown Casino
- Rush Street/ Little River Band of Ottawa Indians
The gaming control board expects to endorse more operators in the coming weeks once their requests have been reviewed and they have been confirmed to have met the licensing requirements of the state.
Friday’s launch is coming just in time for the Super Bowl and March Madness, which will begin shortly. The mobile apps can be downloaded immediately and bettors can wager on any sports, from the NFL to cricket, blackjack, slots, and many more. The DraftKings mobile app can be used from state to state.
“There are possibly residents in cities adjacent to Michigan who may be interested in Michigan online gambol, all they have to do is come to Michigan, register, and place their bets, and go back to their place of residence and continue betting from there” commented Johnny Avello, DraftKings’ director of race and sportsbook.
The Michigan Gaming Control Board confirms that three Detroit casinos recorded $639 million in revenue, a 56% reduction from the value reported in 2019. However, online sports betting and online gambling are expected to help casinos make up for the incurred losses and also generate tax for the state. Experts at MichiganSharp.com have predicted that Michigan online sports betting and online gaming could generate up to $650 million in revenue, while the tax projection revenue is at $93.6 million.
A tax rate of 8.4% applies to online sports betting, which is quite low when compared to other states where online gambling is legal. The tax rate for online gambling varies between 20% and 28%. It is expected that the 30% of the taxes received from the three commercial casinos – MGM and Grand Detroit, MotorCity, Greektown, will be allocated to the city of Detroit, 5% to the Michigan Agriculture Equine Industry Development Fund, and the remaining 65% to the Internet Gaming Fund.
Twenty percent of iGaming revenue will be allocated to the local regulatory authority, 10 percent for the Michigan Strategic Fund, and 70 per cent for the Internet Gaming Fund. Ninety per cent of sports betting revenue generated by tribal casinos will be allocated to the Internet Sports Betting Fund, while 10% will be allocated to the Michigan Strategic Fund.
