It’s official! Online gambling has come to Michigan, transforming the state’s gaming industry from a retail-heavy market to a digital betting landscape. At noon yesterday, Michigan online gambling went live, ushering in a new era for betting enthusiasts across the Great Lakes State. Here’s how Michigan shapes up by the numbers.
10–Online Casinos/Sportsbook Providers Authorized For Launch
In total, the Michigan Gaming Control Board has approved 10 operators for launch. More are definitely on the way, but these are the providers authorized to go live right now. Note that of them, eight are approved to offer both sportsbooks and online casinos, while Barstool and PointsBet are set for sportsbook app launch only:
- William Hill
- Golden Nugget
- Barstool Sports
These brands have all been chomping at the bit to get a taste of the Michigan online gambling market. Many have made deals with Michigan’s professional sports teams and arenas, gearing up for a competitive betting landscape. With 10 operators approved on day one, it’s sure to be a crazy race for the top spot in Michigan. And that top spot will be a huge moneymaker for whichever operator manages to claim it.
$650 Million–Potential Online Gaming Revenue
Online gaming is expected to be a booming industry in Michigan. While some estimates have been more conservative, we’re in line with other revenue projections. MichiganSharp.com’s $650 million estimate is broken into two parts:
- $400 million in online and retail sports betting.
- $250 million in online casino and poker revenue.
Online sports betting is a large part of any sports betting industry. In some states, online wagers account for over 95% of total sports betting and 100% for Tennessee sports betting. That figure is likely skewed because of COVID-19. However, online sports betting will probably still have a steady online presence when the pandemic ends. NFL watch-parties are great social events that lend themselves to friendly wagers among friends. Seeing whose wagers perform the best has a good chance of making informal get-togethers the bread and butter of mobile sports betting post-pandemic. In the short-term, Michigan should also expect to see some significant sports betting handle during the 2021 Super Bowl.
Online casinos and poker should also be expected to underperform compared to sports betting. For some players, casino games can feel too similar to each other–and only fun accompanied by a nearby bar and various entertaining diversions. Other players can find them intimidating.
And that’s especially true for poker. However, a recent development in Michigan could lead to an interstate online poker agreement, vastly increasing the online player pool.
Michiganders will soon have more convenient betting options, and they should expect to be part of a thriving market. It’ll add accessible options and invite new bettors into the industry. Michiganders have a lot to look forward to when online gaming arrives.
$93.6 Million–Projected Tax Revenue From Michigan Gaming
$650 million in sports betting and online casino revenue sounds promising. But that’s not all the money in the gaming industry or the cut Michigan’s cities and education fund receive. The total estimated tax bill that Michigan’s gaming industry shells out to the state still comes out to $93.6 million. That’s nothing for anyone to stick their nose up at.
But those tax dollars are split among:
- Michigan Education
- The State of Michigan
- The City of Detroit
- Michigan Strategic Fund.
Gaming taxes commonly fund education. However, Michiganders must ensure that elected officials don’t cut education funding from other sources. Gaming funds only increase education funding if none of the other sources of education funding decrease. A $63 billion education budget is coming down the pipeline for Michigan schools. Michiganders should make sure their elected officials actually use the money from gaming to supplement education funding instead of replacing other sources of funding.
The State of Michigan and City of Detroit also split part of the tax bill. Those bits of tax revenue fund various public services and help supplement low budget sections. These include anti-gang and youth programs, emergency services, and street lighting.
But the final use of gaming taxes is the Michigan Strategic Fund. It’s a group that approves various grants and loans and helps Michigan create jobs. When tribal casinos pay gaming taxes, it’s often into the Michigan Strategic Fund.
The tax revenue that Michigan receives from its gaming industry goes to productive places. But it’ll be up to bettors to ensure their elected officials keep directing the money to productive places.
Michigan Gaming Transformed
It’s easy to get overwhelmed by numbers. However, we’ve given you three of the most important numbers to watch when online gaming comes to Michigan. Bettors can expect:
- 10 online sports betting/casino operators (with more on the way)
- $650 million in potential online gaming revenue
- $93.6 million in potential gaming tax revenue
That gives bettors an idea of what to expect for themselves and their state. Online gaming will undoubtedly boost Michigan’s economy. But Michiganders now have new ways to conveniently gamble, and that may be a reward in itself for some bettors. However bettors and players choose to gamble, the gaming industry is about to invite many more Michiganders to try different types of gambling. Online gaming’s arrival carries high expectations from bettors and analysts. Hopefully, it lives up to them.
If you or someone you know has a gambling problem and wants help, call or text the Tennessee REDLINE: 1-800-889-9789. Please Gamble Responsibly. 21+