Online sports betting to begin in Michigan on Jan. 22

Sports betting now legal in Michigan
Sports betting now legal in Michigan

Michigan will officially allow online sports betting for the first time starting on Friday, Jan. 22.

The Michigan Gaming Control Board today authorized nine operators to begin online sports betting or both online gaming and sports betting at noon on Friday, Jan. 22.

“The Michigan Gaming Control Board and the state’s commercial and tribal casinos will begin a new era Jan. 22 with the launch of regulated online gaming and sports betting,” said Richard S. Kalm, MGCB executive director. “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. 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 operators authorized to begin online offerings Jan. 22 are:

Michigan legalized sports betting in 2019, but until now, players had to place bets in person at casinos.

Taxes and Payment Rates

The tax and payment rate for online sports betting is 8.4 percent. The tax and payment rate for internet gaming ranges from about 20 percent to 28 percent.

The Detroit casinos also may be required to pay a municipal services fee and a development agreement payment to the city of Detroit.

Tax Allocations

For the Detroit casinos, online sports betting and internet gaming taxes are allocated:

  • 30 percent to the city of Detroit
  • 5 percent to the Michigan Agriculture Equine Industry Development Fund (up to $3 million per year from each tax source)
  • 65 percent to the state Internet Sports Betting Fund or the state Internet Gaming Fund

For internet gaming, a hold-harmless provision seeks to help the city recoup lost gaming tax revenue if the city of Detroit collects less than $183 million in a fiscal year.

For the tribal casinos:

  • Online Sports Betting: Payments by tribes are allocated to the Internet Sports Betting Fund (90 percent) and the Michigan Strategic Fund (10 percent)
  • Internet Gaming: Payments by tribes are allocated 20 percent to local jurisdiction governing body for services, 70 percent to the state Internet Gaming Fund and 10 percent to the Michigan Strategic Fund.

Internet Sports Betting Fund/Internet Gaming Fund

Other money collected under these acts will be used for:

  • Appropriated funding for MGCB
  • The Compulsive Gaming Prevention Fund ($500,000 annually after board expenditures)
  • The First Responder Presumed Coverage Fund ($2 million after board expenditures and compulsive gambling fund)
  • The State School Aid Fund (all money remaining after the above expenditures)

Resources

The MGCB has published FAQs, patron dispute forms and a sports wagering catalog on its website, www.michigan.gov/mgcb.


About the Author:

Ken Haddad is the digital content manager for WDIV / ClickOnDetroit.com. He also authors the Morning Report Newsletter.