Michigan Gaming Control Board authorizes online gaming and sports betting

19 January 2021

(PRESS RELEASE) -- 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, 22 January.

“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 22 January are:

Tribe or Casino/Associated Platform Provider/Gaming Type offered on 22 January

Bay Mills Indian Community/DraftKings/Internet Casino Games and Internet Sports Betting

Grand Traverse Band of Ottawa and Chippewa Indians/William Hill/Internet Casino Games and Internet Sports Betting

Greektown Casino Hotel/Penn Sports Interactive Barstool Sportsbook/Internet Sports Betting

Hannahville Indian Community/TwinSpires/Internet Casino Games and Internet Sports Betting

Keweenaw Bay Indian Community/Golden Nugget Online Gaming/Internet Casino Games and Internet Sports Betting

Little River Band of Ottawa Indians/Rush Street/Internet Casino Games and Internet Sports Betting

MGM Grand Detroit Casino/BetMGM Roar Digital/Internet Casino Games and Internet Sports Betting

MotorCity Casino/FanDuel/Internet Casino Games and Internet Sports Betting

Sault Ste. Marie Tribe of Chippewa Indians/Wynn/Internet Casino Games and Internet Sports Betting

The days between authorization and launch will give the operators and platform providers additional time for testing and adjustments before the gaming goes live, Kalm said.

The MGCB expects to authorize additional operators and platform providers in the coming days and weeks as agency staff review other submissions to ensure they meet the state’s regulatory requirements. Controls to ensure safety and fairness for bettors have been key concerns for the MGCB.

“We want the public to have confidence when they place wagers, and our agency has required the providers to prove they meet Michigan’s standards, which are designed to protect the participants,” Kalm said.

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)

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Michigan Gaming Control Board authorizes online gaming and sports betting is republished from iGamingNews.com.

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