Michigan residents will now be able to legally bet from January 22nd at noon, capping off a year of impatience and anticipation among bettors and betting firms. According to a recent statement released by MCCB, 9 operators have been officially approved and licensed to offer online betting services including sports betting and online gaming in Michigan. Additional approvals are expected in the coming days. While Governor Gretchen Whitmer and the Michigan legislature legalized online betting back in December 2019, regulators spent a bigger part of 2020 coming up with ways to license and monitor new platforms as well as formulate new betting rules and regulations.
William Hill, BetMGM, and FanDuel among approved sportsbooks
With this new development, the minimum gambling age in the state of Michigan has been set at 21 years. While anyone willing to place a bet does not have to be a Michigan resident, they should be within the state borders. This means that players from other states where betting is legal such as Ohio could place bets within the state of Michigan using the new betting applications. The 9 operators allowed to operate in the state of Michigan include FanDuel, BetMGM, William Hill, DraftKings, Golden Nugget Rush Street, Wynn, and Penn State Interactive.
Richard Kalm, the Gaming Control Board executive director pointed out that the four days differential between the launch date and the authorization date was to give betting companies ample time to test and make necessary adjustments to their platforms. Operators such as DraftKings and FanDuel allowed fans to complete the onboarding process as they awaited to place their first legal bets from Friday. Kalm also added that the introduction of online betting in the state will be beneficial to both the local community and the state.
Payment Rates and Tax Rates to begin at 20-28%
Although in-person betting began back in March 2020, everything came to a standstill after the outbreak of Covid-19. In summer, many sporting lounges resurfaced and have all remained at reduced capacities since then. Now, both the tribal payment rate and the tax rate for sports betting all remain at 8.4%. On the other hand, the payment rates and tax rates for casinos will range from 20% to 28%. According to Mike Raffensperger, FanDuels’ CMO, more than 90% of FanDuel’s clients use its native mobile betting application. Raffensperger also added that he does not believe that the introduction of online sports betting will not have any impact on the existing betting lounges and casinos.
Penn National State released a statement stating that it intends on launching the Barstool Sportsbook app on Android, desktop, and iOS by 22 January Midday. The sportsbook online casino games will then follow shortly after regulatory approvals have been confirmed. According to Jon Snowden, the CEO of Penn National, the company has been impressed with the success that its mobile application achieved after it was launched back in September 2020 in Pennsylvania. From midday Friday, players residing in Michigan will be able to make their first deposits on the sportsbook native mobile application and the sportsbook will match the deposit with a donation. The new fundraiser will be geared towards the financing and support of small businesses that were affected by the outbreak of Covid-19. Other sportsbooks that released press statements in anticipation of Friday’s launch include BetMGM and Motorcity Hotel and Casino.