Please go directly to the main content.
The people of Michigan are eagerly anticipating the upcoming discussions on sports betting in the state legislature. While the state’s stance remains uncertain, Dan Gilbert, a proud Michigander, is fully prepared to capitalize on the growing enthusiasm for the gaming industry, largely driven by the popularity of sports betting.
According to Bloomberg, Gilbert, the individual behind Quicken Loans and the Cleveland Cavaliers, is prepared to relinquish ownership of various casino properties by returning his keys.
Gilbert’s casino company, Jack Entertainment, has enlisted Deutsche Bank and Credit Suisse to assist in finding a buyer for his ownership share. Jack Entertainment is responsible for the ownership and operation of various casinos and racetracks in:
- Michigan
- Ohio
- Kentucky
- Maryland
It is important to mention that owning both a professional sports league and a sportsbook can create complications. A clear example of this is Tilman Fertitta, who owns the Golden Nugget Atlantic City and the Houston Rockets. Due to this dual ownership, Fertitta is not permitted to accept sports wagers on NBA games in New Jersey.
As sports betting legislation emerges, Gilbert can anticipate encountering comparable limitations in Michigan and other states.
Gilbert no stranger to maximizing opportunity
As the NFL regular season commences, it’s no surprise that sports betting takes the spotlight. With considerable revenue potential, the budding industry commands attention through constant headlines and partnerships, fueling high expectations.
Gilbert acknowledges that his casinos’ potential for success lies in an active sports betting market. Currently, all states that have legalized sports betting mandate that a licensed casino must be affiliated with a sportsbook. It is highly probable that this pattern will persist as more states embrace online gambling.
It is undeniable that the gambling market is extremely competitive, and it is worth noting that a significant number of Gilbert’s casinos are not dominating their respective areas.
For instance, Gilbert is the proprietor of Greektown Casino-Hotel located in Detroit. Unfortunately, the casino is notably falling behind its two rival establishments in terms of revenue, with a mere 23 percent market share to its name.
His company’s valuation may increase with the potential introduction of sports betting.
Speculation on a potential casino buyer
There have been no announcements made by Jack Entertainment regarding potential buyers, but if speculation were to arise, Caesars Entertainment would likely be at the forefront.
Caesars had previously shown interest in Gilbert’s casinos. Additionally, the two entities were partners in two Ohio properties located in Cleveland and Cincinnati. These casinos were known as Horseshoe until three years ago when Gilbert acquired Caesars’ stake in the business.
It is highly probable that an interested party will emerge soon, irrespective of Caesars’ level of interest.
When the legislature reconvenes after summer break, Michigan State Rep. Brandt Iden has pledged to reintroduce sports betting. If a sports betting bill is passed in the state, Gilbert’s company will gain further appeal as it currently operates one of just three commercial casinos in Michigan.
