Online Gambling Begins in Michigan Today
Michigan will finally launch online casino games and sports betting today.
One of the latest states to legalize online gambling is Michigan. Players have been waiting for months to see the industry come to fruition and today is the day. It was expected that some services would launch before 2020 came to an end, but the start time was delayed. Now, sports betting and online casino services will launch at noon today.
Details of the Launch and New Industry
Gaming regulators in the state have approved all three casinos in Detroit for licensing and seven of the tribal operators who provide Class III gaming. Over the next few weeks, even more approvals are expected. More operators and platform provider licenses will be provided by regulators.
Richard Kalm, the Executive Director of the Michigan Gaming Control Board, announced that this week will be a new era for the state, providing new ways for casinos to engage customers. The services will also offer state and local governments tax payments, which are essential now due to the effects of the COVID-19 pandemic.
Top operators in the iGaming industry will be offering services in the state including BetMGM, DraftKings, and FanDuel. Players who are 21 years of age are welcome to sign up for new accounts, taking part in the wagering activities. The new industry should kick off quickly with many players logging online as the AFC and NFC championship games take place this weekend.
Operators will need to pay taxes on revenues with both industries subject to different percentages. Sports betting is taxed at 8.4%. For online casino games, the tax rate is 20 to 28 percent depending on the amount of adjusted gross receipts. Funds from the casino industry will go to the school aid fund in the state, assisting public schools.
A portion of revenues will also go to first responders who lost wages as well as medical benefits for those who have cancer after being employed as a firefighter. The commercial casinos will pay a portion of the tax revenues to Detroit as it is the home city of the venues. Tribal casinos will pay local municipalities as well.
Michigan legalized online gambling and sports betting over a year ago. In March 2020, casinos began accepting retail sports bets, but that was short-lived due to the onset of the COVID-19 pandemic. Operators only offered services for a few days before the venues had to close in an effort to slow the spread.
At the same time, the licensing system for online operators was still in the works. So while the land-based casinos were shut down, there was no other option to fall back on. The state worked as quickly as they could to get online services going, but there were continual delays.
Now that casinos have been reopened for a few months, the demand is there for sports betting as well as online gambling. The state has been able to see the sports betting demand and expects that online services will be quite profitable. Analysts feel that players will lean towards sports betting in the beginning, but then start to take advantage of casino and poker games.
Operators have been displaying advertisements via several channels over the past few weeks in anticipation of the launch. This has only helped create more excitement among players as they wait for the new sites to launch.
By next week, we should have some idea as to how successful the new industry will be. Players are more than willing to get involved in online gambling and with plenty of options on the table, there will be much to discover in the state. We expect sports betting and online casino numbers to be quite large over the first few weeks and even months that the industry is in operation.