Governor Gretchen Whitmer recently signed the Lawful Sports Betting Act, making Michigan the 20th state to legalize sports betting. Now the Michigan Gaming Control Board must draft rules and regulations before the first bet can be taken—likely not in time for March Madness, officials say.
The measure legalizes retail and online sports betting, online gambling through a casino’s app or website, and daily fantasy sports. Analysts predicted the new industry will generate revenue of $19 million annually with $5 million going to the state’s School Fund Aid program.
Under the bill, Michigan’s 23 tribal and three commercial casinos will be allowed to apply for an online sports betting license for a $50,000 application fee, then pay $100,000 for the actual license and $50,000 for an annual renewal. Revenue will be taxed retail sports betting already is permitted. Sports wagering will be taxed at 8.4 percent; the three Detroit casinos also will pay an additional city tax of 1.25 percent. Operators can offer just one online platform and must use official league data for example for parlay bets. Taxes on internet gaming would range from 20 to 28 percent.
Most states have had a six-month turnaround from approval to taking bets; Indiana had the fastest transition, at three months and one week. Colorado, Illinois, Michigan, Montana, New Hampshire, Tennessee and Washington D.C. all have legalized sports betting but none have debuted it as yet.
