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In 2019, the legality of daily fantasy sports (DFS) in Michigan was finally determined. The state passed expanded gambling bills, which were signed into law by Gov. Gretchen Whitmer on Dec. 20, 2019, encompassing the regulation and taxation of fantasy contests.
In January 2020, the DFS companies were granted temporary licenses by the Michigan Gaming Control Board, subsequently commencing the payment of taxes.
Daily fantasy sports regulation in Michigan
The state of Michigan imposes an 8.4% tax on adjusted revenues collected by daily fantasy sports operators.
The tax rate remains consistent for both retail sportsbooks in Detroit and the upcoming statewide launch of online sports betting.
Stay updated on the launch of online sports betting with our live updates.
Revenue raised by daily fantasy sports in Michigan
In 2020, Michigan witnessed the inaugural year of regulated daily fantasy sports, resulting in an impressive adjusted revenue surpassing $14.7 million by November. Notably, the state benefited from this venture with a significant influx of over $1.2 million in new tax revenue.
(Page last modified: January 12, 2021)
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $14,726,535.78 | $1,237,029.00 |
| DraftKings | $8,367,385.74 | $702,860.40 |
| FanDuel | $5,547,724.52 | $466,008.87 |
| Fantasy Football Players Championship | $381,447.43 | $32,041.59 |
| Fantasy Sports Shark | $273,263.53 | $22,954.14 |
| Yahoo Fantasy Sports | $102,117.27 | $8,577.84 |
| SportsHub Games Network | $32,719.41 | $2,748.43 |
| FullTime Fantasy Sports Network | $21,064.57 | $1,769.41 |
| Boom Shakalaka Inc. | $813.31 | $68.32 |
Michigan’s biggest daily fantasy sports sites
FanDuel and DraftKings dominate the DFS market in the US, accounting for over 90 percent of it. Unsurprisingly, these two companies are also the top choices for DFS operators in Michigan.
In November 2016, the two companies agreed to merge. Nevertheless, the merger collapsed due to ongoing federal anti-trust investigations that questioned its potential monopolistic nature.
The state now imposes taxes on the fantasy contests that are currently active.
- Boom Shakalaka Inc.
- DraftKings
- FanDuel
- Fantasy Football Players Championship
- Fantasy Sports Shark
- FullTime Fantasy Sports Network
- SportsHub Games Network
- Yahoo Fantasy Sports
Historic MI DFS revenue per month
Let’s take a closer look at the monthly progress of daily fantasy sports in Michigan.
November 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $2,244,563.43 | $188,543.33 |
| DraftKings | $1,355,360.99 | $113,850.32 |
| FanDuel | $871,585.06 | $73,213.15 |
| Yahoo Fantasy Sports | $13,746.33 | $1,154.69 |
| SportsHub Games Network | $2,176.77 | $182.85 |
| Fantasy Football Players Championship | $1,535.83 | $129.01 |
| Fantasy Sports Shark | $0.00 | $0.00 |
| FullTime Fantasy Sports Network | $158.45 | $13.31 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
October 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $2,181,382.95 | $183,236.18 |
| DraftKings | $1,331,868.77 | $135,339.48 |
| FanDuel | $825,502.82 | $69,342.24 |
| Yahoo Fantasy Sports | $18,187.49 | $1,527.75 |
| SportsHub Games Network | $4,364.75 | $366.64 |
| Fantasy Football Players Championship | $1,459.12 | $122.57 |
| Fantasy Sports Shark | $88,230.93 | $7,411.40 |
| FullTime Fantasy Sports Network | $0.00 | $0.00 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
September 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $3,017,249.69 | $253,448.97 |
| DraftKings | $1,611,184.32 | $135,339.48 |
| FanDuel | $1,193,191.18 | $100,228.06 |
| Fantasy Football Players Championship | $95,367.78 | $8,010.89 |
| Fantasy Sports Shark | $81,947.71 | $6,883.61 |
| SportsHub Games Network | $16,092.86 | $1,351.80 |
| Yahoo Fantasy Sports | $12,972.36 | $1,089.68 |
| FullTime Fantasy Sports Network | $6,493.48 | $545.45 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
August 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $2,260,421.99 | $189,875.45 |
| DraftKings | $1,148,952.33 | $96,512.00 |
| FanDuel | $952,246.06 | $79,988.67 |
| Fantasy Football Players Championship | $148,395.07 | $12,465.19 |
| Yahoo Fantasy Sports | $7,203.15 | $605.06 |
| FullTime Fantasy Sports Network | $3,624.02 | $304.42 |
| SportsHub Games Network | $1.36 | $0.11 |
| Fantasy Sports Shark | $0.00 | $0.00 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
July 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $881,204.13 | $74,021.15 |
| DraftKings | $619,208.97 | $52,013.55 |
| FanDuel | $220,894.26 | $18,555.12 |
| Fantasy Football Players Championship | $37,973.29 | $3,189.76 |
| Yahoo Fantasy Sports | $2,577.70 | $216.53 |
| FullTime Fantasy Sports Network | $358.63 | $30.12 |
| SportsHub Games Network | $191.28 | $16.07 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
| Fantasy Sports Shark | $0.00 | $0.00 |
June 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $488,049.80 | $40,996.17 |
| DraftKings | $382,621.93 | $32,140.24 |
| FanDuel | $78,069.30 | $6,557.82 |
| Fantasy Football Players Championship | $24,436.00 | $2,052.62 |
| SportsHub Games Network | $2,354.30 | $197.76 |
| FullTime Fantasy Sports Network | $426.43 | $35.82 |
| Yahoo Fantasy Sports | $141.84 | $11.91 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
| Fantasy Sports Shark | $0.00 | $0.00 |
May 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $329,173.37 | $27,650.57 |
| DraftKings | $236,525.06 | $19,868.10 |
| FanDuel | $62,673.23 | $5,264.55 |
| Fantasy Football Players Championship | $21,115.92 | $1,773.74 |
| Fantasy Sports Shark | $6,244.12 | $524.51 |
| FullTime Fantasy Sports Network | $2,160.32 | $181.47 |
| SportsHub Games Network | $454.72 | $38.20 |
| Yahoo Fantasy Sports | $0.00 | $0.00 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
April 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $185,504.76 | $15,582.39 |
| DraftKings | $145,057.86 | $12,184.86 |
| FanDuel | $23,596.70 | $1,982.12 |
| Fantasy Football Players Championship | $12,269.99 | $1,030.68 |
| FullTime Fantasy Sports Network | $3,364.44 | $282.61 |
| Fantasy Sports Shark | $1,215.77 | $102.12 |
| Yahoo Fantasy Sports | $0.00 | $0.00 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
| SportsHub Games Network | $0.00 | $0.00 |
March 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $465,881.25 | $39,134.03 |
| DraftKings | $248,911.98 | $20,908.61 |
| FanDuel | $182,707.33 | $15,347.42 |
| Fantasy Football Players Championship | $15,346.57 | $1,289.11 |
| Fantasy Sports Shark | $14,190.95 | $1,192.04 |
| Yahoo Fantasy Sports | $3,226.99 | $272.07 |
| FullTime Fantasy Sports Network | $1,346.95 | $113.14 |
| Boom Shakalaka Inc. | $149.89 | $12.59 |
| SportsHub Games Network | $0.59 | $0.05 |
February 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $961,886.73 | $80,798.48 |
| DraftKings | $530,879.63 | $44,593.89 |
| FanDuel | $428,714.65 | $36,012.03 |
| Fantasy Sports Shark | $36,938.89 | $3,102.87 |
| Yahoo Fantasy Sports | $6,988.27 | $587.01 |
| SportsHub Games Network | $3,570.97 | $299.96 |
| Boom Shakalaka Inc. | $449.36 | $37.75 |
| FullTime Fantasy Sports Network | -$1,686.04 | -$141.63 |
| Fantasy Football Players Championship | -$43,969.00 | -$3,693.40 |
January 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $1,622,986.75 | $136,330.88 |
| DraftKings | $756,813.90 | $63,572.37 |
| FanDuel | $708,543.93 | $59,517.69 |
| Fantasy Football Players Championship | $67,516.86 | $5,671.42 |
| Fantasy Sports Shark | $44,495.16 | $3,737.59 |
| Yahoo Fantasy Sports | $37,073.14 | $3,114.14 |
| FullTime Fantasy Sports Network | $4,817.89 | $404.70 |
| SportsHub Games Network | $3,511.81 | $294.99 |
| Boom Shakalaka Inc. | $214.06 | $17.98 |
How popular is daily fantasy sports in Michigan?
With over 10 million residents, Michigan ranks as the tenth most populous state in the United States. Consequently, it represents a considerably significant market for DFS (Daily Fantasy Sports).
DFS sites are estimated to earn approximately $6.7 million per year from players in Michigan. Remarkably, the state accounts for nearly 4 percent of all DFS contest entry fees nationwide.
Michigan is believed to have over 37,000 active DFS players, contributing nearly $70 million in annual entry fees, ranking it as the 10th state with the highest amount.
DFS sites in Michigan generated adjusted revenues of almost $7.2 million in the first two-thirds of 2020, resulting in the state collecting over $600,000 in taxes.
Law put end to long daily fantasy sports debate
After years of legal disputes, the decision was made. Prior to this, the leading operators in the DFS industry were convinced of the legality of DFS and continued to serve customers within the state. However, Rick Kalm, the Executive Director of the Michigan Gaming Control Board, expressed his belief in 2015 that DFS is completely illegal.
Following the introduction of legislation by the state Senate to modify the Michigan penal code and officially recognize daily fantasy sports (DFS) as a skill-based game, an opinion emerged stating that this move was not primarily aimed at regulating DFS operators in the state, but rather aimed at providing clarity on the matter. Unfortunately, despite these efforts, the bill and any subsequent attempts to enact DFS legislation ultimately failed in Michigan in the following years.
In January 2017, a new bill emerged in the Michigan legislature that aimed to contest the federal prohibition on sports betting. Although the bill received a hearing before the House Regulatory Reform Committee, it did not proceed to a vote.
Gov. Snyder vetoed 2018 bill at end of term
In the past, attempts were made to legalize DFS in Michigan by modifying the penal code to officially recognize fantasy sports as a skill-based game. Unfortunately, these efforts were unsuccessful, as the proposed bill lacked any provisions for regulating operators or implementing taxes.
The consideration of online gambling legislation by Michigan lawmakers took place in 2017. Despite the bill’s lack of progress during that year, it was carried over to 2018.
The Michigan House of Representatives has passed the Lawful Internet Gaming Act, H 4926, with a vote of 68-40. This bill would grant authorization for various types of online gambling, including online sports betting, in the event that the federal ban on sports betting is lifted.
On December 20, 2018, the Michigan Senate approved the bill with a vote of 33-5, and subsequently sent it back to the House for concurrence. The bill was then passed in the House with a vote of 71-35.
Nevertheless, the bill was vetoed by former Gov. Rick Snyder on December 31, 2018.
Meanwhile, the state still witnesses the operations of the country’s biggest DFS operators.
Hall, Iden get law signed by Gov. Whitmer
In December 2019, Representatives Brandt Iden and Matt Hall, who had been sworn in on Jan. 1, 2019, sponsored a collection of gambling expansion bills that were ultimately signed by Whitmer.
On September 4, 2019, Hall proposed bill H 4917, which granted permission for sports betting. Following a vote on October 30, 2019, the bill was successfully passed in the House with a vote of 65-43.
On December 11th, the Senate approved it with a vote of 35-3, while the House accepted the modified changes with a vote of 98-10.
H 4307, a bill included in the House’s initial package, had to wait until December 4th to gain approval from the House due to the requirement of a supermajority vote. This was necessary because the bill included a provision that aimed to repeal a ban, approved by voters in 1996, on political contributions from casino licensees and their employers.
The legislation approved the legalization of online gaming, online fantasy sports contests, sports betting, and advance deposit wagering in horse racing.