Online gambling and sports betting to start on January 22

Michigan will be latest state to allow digital wagers
Posted at 12:53 PM, Jan 19, 2021
and last updated 2021-01-19 13:07:50-05

DETROIT — Gamblers and sports fans will have a new way to play; starting January 22 at noon the state of Michigan will permit online betting.

Nine operators will be part of the kickoff:

  • Bay Mills Indian Community (DraftKings)
  • Grand Traverse Band of Ottawa and Chippewa Indians (William Hill)
  • Greektown Casino (Penn Sports Interactive/ Barstool Sportsbook)
  • Hannahville Indian Community (TwinSpires)
  • Keweenaw Bay Indian Community (Golden Nugget Online Gaming)
  • Little River Band of Ottawa Indians (Rush Street)
  • MGM Grand Detroit (BetMGM/Roar Digital)
  • MotorCity Casino (FanDuel)
  • Sault Ste. Marie Tribe of Chippewa Indians (Wynn)

More operators and platforms are expected to receive approval in the next few weeks. The control board says the delay between approval and launch will provide enough time for the systems to complete testing.

“Michigan residents love sports and, judging by inquiries we’ve received, eagerly anticipate using mobile devices to place bets through the commercial and tribal casinos," said Richard S. Kalm, Executive Director of the Michigan Gaming Control Board. "Online gaming and sports betting will provide the casinos with new ways to engage with customers while the state and local communities will benefit from taxes and payments on wagering revenue.”

The tax rate for internet gaming ranges from around 20 to 28 percent. Online sports betting faces a 8.4% tax rate. Services provided through Detroit's 3 casinos could also be charged for a municipal service fee and development agreement payment.

The money raised through online betting gambling will be divided among local and state agencies. For Detroit casinos, 30% will go to the city, 5% to the Michigan Agriculture Equine Industry Development Fund, and 65% to the state's Internet Sports Betting Fund and Internet Gaming Fund.

Taxes from tribal casinos will be divided differently. Sports betting revenue splits 90% to the Internet Sports Betting Fund and 10% to the Michigan Strategic Fund. Internet gaming taxes will have 20% go to the local jurisdiction, 70% to the state Internet Gaming Fund, and 10% to the Michigan Strategic Fund.

The Internet Sports Betting Fund and Internet Gaming Fund are used to combat gambling addiction, support first responders, and enhance the State School Aid Fund when the tax revenue covers all the previous expenses.