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The long-awaited vision of legalized iGaming and sports betting in Michigan has finally become a reality as Gov. Gretchen Whitmer signed gambling expansion bills into law on Friday morning, just before the end of the current legislative session.
Even though there is still a lot of work to be done before either product is available in Michigan, the passing of the Lawful Sports Betting Act is a significant milestone. This makes Michigan the 20th state to legalize sports betting and also includes regulations for daily fantasy sports.
The work ahead cannot proceed without Whitmer’s signature, as it is crucial for the gambling expansion to bring not only revenue for the state but also various benefits to the local economy.
Gambling expansion bills can boost Michigan economy
This is an early Christmas gift for various entities in Michigan, including the three Detroit commercial casinos, several tribal casinos, mobile sportsbook operators like DraftKings and FanDuel, online poker and slot operators, and numerous other companies. The people of the Wolverine State also share in this joyous occasion.
The establishment of a physical sportsbook results in the creation of new employment opportunities, although the quantity of full-time, permanent positions generated may not be particularly remarkable. However, the impact of this development could primarily be observed in the increased utilization of local services by the casinos.
The state has already witnessed this phenomenon to a limited extent. The MGM Grand has already completed the construction of its sportsbook, involving not only construction companies but also technology firms. It is highly likely that Greektown and Motorcity will follow suit in the near future.
Partnering with locally-owned companies is of utmost importance for casinos to amplify their local impact. However, it is worth noting that even out-of-state companies contribute to the local economy to a lesser extent by employing local workers.
In addition to construction, the demand for workers will increase due to other long-term requirements. These include food and beverage services, janitorial services, as well as security and technology maintenance. Furthermore, the casinos might consider outsourcing certain marketing activities for their new sportsbooks.
That statement only touches on the retail aspect of sports betting. Online sportsbooks such as DraftKings and FanDuel, despite being based outside of Michigan, also require a local presence.
Why even online sportsbooks need boots on the ground
Promotion is one of the most significant ongoing costs for online sportsbooks. These operators often invest in advertising on websites commonly visited by residents of Michigan, such as local newspapers and other publications within the state.
Online sportsbooks also utilize traditional forms of promotion, such as billboards, direct mail, radio, and television, in addition to their digital marketing strategies.
To offer iGaming and sports betting, companies such as DraftKings and FanDuel must ensure compliance with state laws. The most reliable way to obtain this assurance is by engaging individuals well-versed in the specific state regulations. Consequently, Michigan attorneys and IT companies may witness an influx of new clients seeking their expertise in this domain.
The introduction of new regulated activities implies an additional workload for the state in terms of regulatory compliance. It remains uncertain whether the state will opt to hire new personnel or outsource this task. Nevertheless, this development provides a fresh motive for the state to allocate its resources towards internal priorities.
The launch date for iGaming and sports betting in Michigan is still uncertain, but one thing is definite – they will happen eventually. Michigan has now officially legalized both gaming products with Whitmer’s signature, which was a significant obstacle to overcome.
