Bettors in the Wolverine State will finally be able to place legal online sports bets on January 22 after officials revealed the launch on Tuesday.
In a statement, the Michigan Gaming Control Board authorized nine gambling operators to start accepting online sports bets at noon of Friday, January 22nd. Per MGCB executive director Richard S. Kalm:
“The Michigan Gaming Control Board and the state’s commercial and tribal casinos will begin a new era Jan. 22 with the launch of regulated online gaming and sports betting. Michigan residents love sports and, judging by inquiries we’ve received, eagerly anticipate using mobile devices to place bets through the commercial and tribal casinos. Online gaming and sports betting will provide the casinos with new ways to engage with customers while the state and local communities will benefit from taxes and payments on wagering revenue.”
Just in Time For the NFL Conference Championship Games
Michigan legalized sports betting in 2019 but up until 11:59 a.m. of Friday, January 22nd, punters had to place their bets in person at retail venues. However, that will change later this week with the launch of legal Michigan online sports betting which is just in time for Sunday’s NFL Conference championship games.
The nine legal Michigan online sports betting operators that are set to go live on Friday are DraftKings, WilliamHill, FanDuel, Golden Nugget Online Gaming, Rush Street, BetMGM, Wynn, and Barstool Sports. According to the MGCB, more operators are expected to receive authorization in the coming weeks.
A Lucrative Revenue Source
Friday’s launch comes 12 months after Gov. Gretchen Whitmer signed a bill to legalize online gambling in the Wolverine State. The commencement of legal Michigan sports betting should be a lucrative revenue source for the state’s casino industry which struggled in 2020 because of the coronavirus pandemic.
The three casinos in Detroit saw a 56% decrease in combined annual revenue in 2020. The MGCB says that legal Michigan sports betting and online gaming could be a way for casinos to make up for the losses they suffered due to the pandemic. At the same time, it will generate tax revenue for Detroit and the state.
Online Tax Rates
Legal Michigan online sports betting will be taxed at 8.4% which is one of the lowest in the United States. The tax rate and payment rate for internet gaming ranges from 20% to 28%. For Detroit casinos, 30% of all online gambling taxes will be allocated to the city while 65% will be allocated to the state Internet Sports Betting Fund or the state Internet Gaming Fund. The other 5% will go the Michigan Agriculture Equine Industry Development, capped at $3M per year from each tax source.
Meanwhile, 90% of legal Michigan online sports betting tax collections of Tribal casinos will go to the Internet Sports Betting Fund while 10% will go to the Michigan Strategic Fund. As for Tribal online gaming payments, 20 % will go to local jurisdiction governing body for services, 70% to the Internet Gaming Fund, and 10% to the Michigan Strategic Fund.