Last Tuesday, the nine casinos and platform providers allowed to launch online sports betting in Michigan were announced. They will start operating following the legalization in state. The 10th operator is also clear after the Michigan Gaming Control Board announced it on Friday.
The operator is Lac Vieux Desert tribe along with its platform provider, PointsBet. The Lac Vieux Desert Band of Lake Superior Chippewa Indians already operate on the Michigan Upper Peninsula’s Northern Water Casino Resort in Watersmeet.
Since the announcement, the list with all 10 providers is now clear. It includes some of the well-known around the gaming community platforms, such as, DraftKings, William Hill, Barstoll Sportsbook, TwinSpires, Golden Nugget Online Gaming, BetMGM, Rush Street, FanDuel and Wynn.
Greektown is the only provider that will launch online gaming in the near future. All of the others will simultaneously launch both online casino gaming and internet sports betting.
Those 10 are not the only providers with authorization to operate on Michigan’s ground. MGCB announced that it will approve more operators and platforms in the coming days and weeks.
According to Michigan’s law, signed at the end of 2019, platform providers must pair with state’s licensed casino to gain authorization to offer the two forms of gambling.
Long-awaited Move
The opening of online wagering in Michigan is a long-awaited event, since the process for legalization started back in 2019. Many other states are forced to sign legal authorization for online gambling by the restrictions imposed by the pandemic enables many of the physical casinos to work.
The opening of Michigan’s online gaming generated huge interest in the past year as well as an advertising blits from operators and platform providers.
It surely came at the right moment since several casinos in the state are working with limited capacity or are not working at all. The online gambling is expected to make up for the financial loses in the past year.
Detroit’s three casinos MGM Grand, MotorCity and Greektown reported a decrease of revenue from last year. In the meantime they had to pay $73.8 million in wagering taxes and development agreement to the city in 2020. The amount was a lot smaller than in 2019.
Online sports betting will be taxed at a rate of 8.4%, while the rate for online gaming usually ranges from about 20% to 28%, according to MGCB.
During the launch week, Penn National will partner with Barstool for a fundraiser event that is aimed to help small businesses survive after experiencing financial loses due to the pandemic. The Michigan fundraiser is part of Barstool’s broader effort to support small businesses in other states.
To participate in the event, Michiganders can make their first deposit on the Barstool Sportsbook mobile app. Penn will then match it with a donation to the Barstool Fund.
Source: “Michigan Gaming Control Board authorizes 10th casino for online sports betting”, Detroit News, January 20, 2021