Online Gambling Numbers On The Rise: Does Michigan Have A Problem?

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Written By Matt Schoch on September 24, 2021
Michigan Problem Gambling September 2021

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(Note from the editor: If you need assistance with problem gambling, please contact the Michigan Problem Gambling Hotline at 1-800-270-7117.)

With Michigan online casino revenue reaching record levels in August and the return of football this month, the potential numbers for September are unpredictable.

Did you know that the internet gaming industry generated a staggering nine-figure revenue? Not only that, but in a single month, online football bets reached an unprecedented $400 million. And can you believe it? Some months even surpassed the $500 million mark!

As we write this in late September, everything is up for discussion in Michigan.

The balance sheets of casino companies and the tax revenues for state, local, and tribal governments are quite impressive.

However, as we have previously discussed on Playinmichigan, it is important to acknowledge the negative consequences that come with increased gambling accessibility. This includes a significant number of Michigan residents losing millions of dollars that they can afford to lose, as well as individuals who may be entering the dangerous territory of problem gambling.

As Responsible Gaming Education Week comes to a close, let’s take a moment to reflect on our current progress.

Nearly 50 residents applied for Responsible Gambling Database

As per the new laws, the Michigan Gaming Control Board created the Responsible Gambling Database alongside the introduction of online gambling in January.

The MGCB spokesperson reported that the agency has received a total of 47 applications for the Responsible Gambling Database. (Please note that the applications can be found here.)

Furthermore, it is worth mentioning that individual operators have implemented self-exclusion programs in addition to the state’s efforts. However, the MGCB does not possess data regarding these programs.

Since 2001, the Disassociated Persons List has been in place to exclude individuals from the Detroit casinos. The newly implemented database is an additional measure to further enforce this exclusion.

As of September 1st, a total of 4,913 applications have been processed for the DPL over a span of more than 20 years. In 2020, amidst the closure of Detroit casinos for the majority of the year, only 67 applications were processed. As for 2021, 83 applications have already been processed thus far.

661 residents no longer banned for life from Detroit casinos

Furthermore, in October of the previous year, lawmakers introduced a fresh legislation that permits individuals residing on the DPL to request removal from the list after a period of five years.

A total of 661 residents have been removed from the DPL since then, with 546 of them being removed this year.

The law is endorsed by responsible gambling advocates who argue that the removal process is a less severe deterrent compared to a lifetime ban, especially at the initial stages.

Informational literature coming from Michigan Gaming Control Board

Problem gambling is heavily influenced by a lack of awareness.

Michiganders possess the ability to identify concerning signs within their own habits, and even more significantly, they can detect indicators of harmful behavior in others.

Newly appointed MGCB executive director Henry Williams stated during an interview with Playinmichigan that the agency intends to create informative materials regarding responsible gambling indicators and available support. These resources will be made accessible to the people of Michigan.

On Friday, the MGCB spokesperson mentioned that the literature is currently undergoing its final review prior to being published.

Michigan college athletics programs on the sidelines for now

College athletics programs in Michigan present an untapped opportunity in the realm of sports betting marketing, offering an unexplored frontier.

Last year, Colorado took the initiative to partner with PointsBet, a sports gambling company. Similarly, schools like Michigan or Michigan State could explore the possibility of collaborating with such companies to generate additional revenue through athletics.

Nevertheless, the increased visibility of gambling companies and the associated negative perception may prove to be too difficult for certain universities to accept.

Caesars and Louisiana State University joined forces last week to collaborate on sponsorships, naming rights, and other branding opportunities.

Some people may find it disappointing, and it could be considered a misstep in the wrong direction.

As an increasing number of universities join forces with gambling companies, it is conceivable for a Michigan school to incorporate a research and assistance component within this sector. This initiative could be financially backed by the company, aiming to combat the potential drawbacks of the industry.

Michael Burke has called for Bayou-style inpatient facility

Michigan could adopt a highly acclaimed program from Louisiana to combat problem gambling.

Michael Burke, the executive director of the Michigan Association on Problem Gambling, has been a strong proponent of establishing a specialized treatment center for gambling disorders. He highlights the Center of Recovery (CORE) located in Shreveport, Louisiana, as a potential blueprint that other states can consider adopting.

Certainly, the main concern lies in securing funding. Burke previously supported the idea of obtaining public funding through tax revenue, but now he has redirected his attention towards seeking an operator who can finance the program as a strategic public relations initiative.

On the other hand, acknowledging the existence of a problem can also be seen as self-destructive behavior for a company. It would require significant courage and deserves recognition for a company to undertake such a crucial step.

Michigan gambling could use a game-changer

The introduction of the Michigan gambling market has resulted in a significant influx of funds into the industry, and companies are undeniably fulfilling their responsibilities by duly settling their tax dues.

Apart from generating tax revenue and providing a fresh source of entertainment for locals, what tangible benefits has the industry brought to the community?

PointsBet has contributed to job creation by establishing their US headquarters in Colorado, while FanDuel plans to bring a technology hub, along with 900 job opportunities, to Georgia. Surprisingly, neither company has shown interest in making Michigan a hub for their operations. Although casinos have hired sportsbook writers for their physical locations and Evolution’s live dealer studios have created employment opportunities in Southfield, Michigan has yet to witness significant large-scale developments in this regard.

Maybe responsible gambling has the potential to bring about significant progress in this area, such as conducting research to find solutions or establishing a rehabilitation clinic for inpatient treatment.

In the upcoming 2022 governor’s race in Michigan, it remains to be seen whether candidates will prioritize the discussion of the advantages and disadvantages of the online gambling boom.

Perhaps, a Playinmichigan reader might have some great ideas on what could be brought here to benefit the people of Michigan. If you have any suggestions, please don’t hesitate to reach out to us.

We are aware that alongside undeniable benefits, there have been numerous drawbacks associated with this situation.

Dial 1-800-270-7117 to contact the Michigan Problem Gambling Hotline.

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