DETROIT – Starting at noon, Friday, online sports betting was allowed for the first time in Michigan.
The launch came about a year after sports betting became legal in Michigan, but until now, players had to place bets in person at casinos.
It’s not just sports betting, but online gambling also has gone live.
Michigan Gaming Control Board (MGCB) Executive Director Richard Kalm this week called the launch a “new era,” saying it will give casinos an additional way to engage with customers and provide state and local governments with extra tax revenue.
Casinos will work with online apps that users would download onto their phone. The MGM Casino is using Roar Digital, Motor City Casino is using FanDuel and Greektown Casino is using Penn Sports Interactive.
There are several native tribal casinos that have been approved as well. They have partnered with Draft Kings, Golden Nugget and others.
The online apps require the user to verify their location within Michigan using the GPS in one’s phone or smart device.
Similar to Michigan legalizing marijuana in 2018, it’s a new way to regulate a business that already had billions of dollars coming through it.
Casinos offering online games like blackjack will pay a tax of between 20% and 28%, depending on their amount of adjusted gross receipts. Net new annual revenues to the state and Detroit, which has commercial casinos, are projected to total $18.6 million and $13.7 million respectively, according to the Michigan Department of Treasury.
Attorney General Dana Nessel said residents should be careful with the application and to read the fine print.
“In some instances, site users may be required to spend or deposit a certain amount of money into an account before receiving their free play credits,” Nessel said. “Users should make themselves aware of such conditions so they are not taken off guard.”
The operators authorized to begin online offerings Jan. 22 are: