Michigan Sports Betting Will Be Limited To Retail Sportsbooks For Immediate Future

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Written By Derek Helling on February 5, 2020
Legal sports betting in Michigan is currently limited to brick-and-mortar sportsbooks

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Despite the Wolverine State’s aim to introduce legal sports betting by March Madness 2020, residents of Michigan should not anticipate the ability to place wagers through their mobile devices. The state’s gaming commission predicts that the delay in online sports betting will persist for the remainder of this year at the very least.

However, the delay in online betting won’t affect the retail sportsbooks, ensuring that Michigan residents and visitors can still place bets in person.

Why is there an online sports betting delay in Michigan?

In states where both retail and online sportsbooks are permitted, it is a prevailing practice to initiate the establishment of brick-and-mortar sportsbooks before launching their online counterparts. This is primarily due to the convenience of formulating regulations and performing inspections for these physical operators.

It should be noted by residents of Michigan that this also pertains to iGaming. Online poker, slots, and other electronic gambling activities will not be launched this year either.

This situation also applies in the Wolverine State, as confirmed by Mary Kay Bean, a spokesperson for the Michigan Gaming Control Board.

Based on our analysis of previous rule sets and our own experience, we anticipate that the rule-making process for mobile sports wagering and internet casino gambling will likely require approximately one year to complete.

By utilizing emergency rules, other states have successfully bypassed these administrative delays. A prime example is Indiana, where online sportsbooks were launched approximately a month after the initiation of its retail books using this method.

To prevent her state from following suit, Michigan Governor Gretchen Whitmer exercised her authority by mandating that any Michigan government agency seeking to utilize emergency rules must obtain her consent beforehand, as stated by Bean.

The completion of tasks by various parties in relation to online sportsbook regulations in Michigan will now be influenced by the current situation. The success of this process will ultimately determine the timeline for the operators to become live.

Who is involved in forming the online regulations?

These rules will be drafted with the involvement of several state agencies and the Michigan Legislature. This collaborative effort will require multiple departments to review and contribute to the creation of different principles.

To illustrate, the state is obligated to establish regulations for the new law’s mandate, which necessitates sportsbooks to utilize official data suppliers for in-game bets. In order to accomplish this, the MGCB must collaborate with multiple parties.

The presence of various obstacles does not impede retail sportsbooks, as the state categorizes them as gambling establishments endorsed by a 1997 law. Consequently, formulating the regulations for these operators is a relatively simpler and faster undertaking.

The MGCB has already begun working on the task, having received license applications from various casinos. Notably, two casinos have already declared partnerships to manage their books.

If the establishment of rules for online operators proceeds smoothly, there is a possibility that they will begin accepting wagers in the Wolverine State in the early months of next year. The Super Bowl LV could potentially serve as an excellent launch date for them.

Although Michiganders may find it disappointing to wait, online sports betting will soon be available in their state. In the meantime, the retail books will strive to provide an excellent product.

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