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In December, a delightful surprise arrived in Michigan as Governor Gretchen Whitmer signed a set of gambling expansion bills into law, effectively legalizing sports betting and iGaming in the state.
However, similar to sports legislation in many other states, the specific details regarding the development of sports betting in Michigan have been gradually revealed.
The Good: Sports Betting Firms Are Partnering With Michigan Casinos
In Michigan, sports betting operators have seized the lucrative opportunities available. Currently, three out of the state’s 26 casinos have established partnerships with these operators.
- PointsBet and the Lac Vieux Desert Public Enterprise and Finance Commission, which operates the Northern Waters Casino Resort.
- FOX Bet, in collaboration with the Odawa Indians Gaming Authority (Odawa Casino),
- BetMGM and MGM Grand Detroit are two separate entities that operate under the MGM brand.
In accordance with state law, a sports betting operator must form a partnership with a casino in order to obtain the necessary license and establish their business in the state. Each casino is granted the privilege of having one partnership, also known as a “skin.”
Once an operator such as PointsBet secures a partnership with a casino, they have the opportunity to utilize their branding to establish both a physical sportsbook and an online or mobile app.
MGM Grand Detroit eagerly paved the way for sports betting on their premises, as they launched Moneyline Sports Lounge in October, well ahead of the governor’s legalization of sports betting, which occurred almost two months later.
According to Mike Neubecker, the Casino’s COO and president, the lounge was initially introduced as a sports bar but is specifically designed for sports betting purposes.
He informed the newspaper that should sports betting become legalized, we are fully equipped to provide an exceptional experience.
The Bad: No Live Bets Yet
The significance of Feb. 2, the day of the Super Bowl, was immense as it marked a key milestone with the legalization of sports betting in Michigan.
Legislators were not hopeful about finalizing all the regulatory details by that date, and their skepticism was justified. As we approach mid-February, land-based sports betting still hasn’t been initiated.
The state legislation mandates that tribal casinos must be launched within 60 days, while both tribal and commercial properties must be launched within 150 days. This implies that the latest possible launch date would be May 18.
However, it appears highly improbable that casinos and lawmakers would not conclude the necessary arrangements and launch before the commencement of March Madness.
Despite the absence of any tournament games in the state, it is anticipated that two local teams, Michigan and Michigan State, will participate in the tournament.
The Ugly: Online Sports Betting Is a Long Way Off
The fact that land-based sportsbooks have not started accepting bets is not as worrisome as the delay in online and mobile sports wagering, which may not be available in Michigan until 2021.
The Michigan Gaming Control Board has maintained a low profile regarding the upcoming year, with only a handful of statements shared by the board’s communications specialist in January.
According to Bean, the board estimates that it will require approximately one year to complete the regulations.
Compared to Indiana, which managed to launch online and mobile sports betting within just five months of their governor legalizing it, this timeline is incredibly sluggish and disappointing.
What’s Ahead In Michigan Sports Betting: More Partnerships Likely
The general progression of state-level sports betting often follows a predictable pattern: legislation is approved, detailed discussions among lawmakers and gaming boards take place, and casinos proceed to construct sportsbooks and establish partnerships.
The casinos in Michigan have entered into partnerships, indicating that more skins will be distributed prior to March Madness and definitely before the May deadline for land-based sportsbooks.
Penn National Gaming, the operator of Detroit’s Greektown Casino Hotel, is highly anticipated to make a partnership announcement soon. Given their existing collaboration with William Hill in Pennsylvania, it is highly likely that they will join forces again for their upcoming venture.
Michigan casinos benefit from the state’s favorable taxes on sports betting revenue. All casinos in the state are subject to an 8.4% tax, while Detroit’s three casinos must pay an extra 1.25% as a city tax.
