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The arrival of online sports betting in Michigan may happen ahead of schedule.
Just in time for March Madness, the initial physical Michigan sportsbooks successfully opened.
Nevertheless, the sportsbooks were unable to gain momentum due to the rapid onset of the COVID-19 pandemic. Shortly after the initial sports bets were made, casinos across the state were forced to close their doors.
Michigan has been unable to enter the market, which could have been beneficial in compensating for the closure of retail casinos, through the utilization of online sports betting apps.
Initially, the state’s intention was to delay online betting until the beginning of 2021. However, legislators are now attempting to expedite the process and are optimistic about launching online sports betting in 2020.
No matter the outcome of Michigan’s timeline, we can turn to its neighboring southern state to gain insights into the potential progression of sports betting in the Wolverine State.
Indiana has been engaged in sports betting for almost ten months now, making it the pioneer state in the region. Consequently, Indiana’s experience can serve as a model for Michigan’s market.
Long wait for online betting in Michigan
The disparity in the timing of the opening of retail sportsbooks and the launch of online apps is a significant contrast between Indiana and Michigan.
Michigan residents have experienced a significantly longer wait for online betting in comparison to Indiana.
In September 2019, retail sportsbooks were launched in Indiana, followed by the opening of online sportsbooks just a month later.
Unsurprisingly, the introduction of online betting triggered a significant surge in Indiana’s handle. In the initial month without online betting, the state accumulated a total of $34 million in wagers. However, following the launch of online sportsbooks the following month, this figure skyrocketed to surpass $90 million in no time.
Michigan could potentially experience a significant surge in wagers, approximately 163% higher on a monthly basis, once its online sportsbooks become operational.
Nevertheless, the inquiry remains as to when online betting will be introduced in the state.
Should Michigan fail to achieve the 2020 launch, there is a possibility of a year-long hiatus between the commencement of retail sportsbooks and the eventual opening of online betting.
Even though the extended wait may not be ideal for gamblers in Michigan, it has the potential to enhance competition within the state’s market. The additional time allows more sportsbooks to adequately prepare, resulting in a greater number of platforms being ready for online betting on the very first day.
Plenty of competition for Michigan
From the onset, there is a notable divergence between Indiana and Michigan in terms of the potential abundance of online sportsbooks.
DraftKings Sportsbook and BetRivers Sportsbook were the initial platforms to accept wagers on the first day of online sports betting in Indiana. FanDuel Sportsbook joined the scene a few weeks afterwards.
As sportsbooks continue to establish partnerships across Michigan, the delay in launching online betting allows them more time to prepare for the exciting first day of action.
There are operators that have already been included in the pipeline.
- DraftKings
- FanDuel
- BetMGM
- Barstool
- FOX Bet
- William Hill
Nevertheless, the sportsbooks are currently in a state of anticipation as they await the finalized rules for online betting. The moment legislators establish these regulations, the sportsbooks will be able to fully prepare for their launch.
The presence of a few operational sportsbooks right from the beginning will contribute to the initiation of healthy competition in Michigan’s market.
Indiana required almost three months to establish four functioning online sportsbooks within the state. On the other hand, Michigan has the capability to launch with as many sportsbooks accepting bets right from the beginning.
Michigan’s market would greatly benefit from a fall launch, as football betting reigns supreme and the state’s sportsbooks are eager to participate.
Michigan’s race for NFL betting
In a race against time, Indiana legislators made swift efforts to ensure the state’s online launch would be operational by the autumn of 2019, with the primary objective of being fully operational during the NFL season.
Michigan now finds itself in a comparable situation.
Online betting in Michigan has the potential to go live anywhere from October to December, and if things progress smoothly, it could be available for the majority of the football season, despite missing the initial kickoff.
Michigan betting could potentially place equal importance on college football as it does on the NFL.
College football betting will play a significant role, thanks to the success of programs like Michigan and Michigan State at schools.
Launching online betting in Michigan this fall could make all the difference between a mediocre beginning and a highly successful start, considering football’s immense popularity for betting in the US.
During September 2019, when retail sportsbooks were the only option in Indiana, Hoosiers placed bets exceeding $20 million solely on football. However, as online betting was introduced in the state in October, this figure skyrocketed to over $41 million for football wagers. By December, the total had nearly reached the $60 million milestone.
With the combination of football betting and intensified competition, Michigan has the potential to experience a highly prosperous online launch.
The entire success of this venture relies on the fall timeline, thus it is crucial for online betting to be launched as soon as possible. If Michigan fails to promptly initiate the process, the opportunity to achieve the same level of success as Indiana may be lost.
