Of the five states with both tribal sports betting and casinos, four include tribal sportsbooks not under state control. The other, Washington, has tribal only gaming, but also pays no taxes.
But tribes in Michigan are not only regulated by the state, but also taxed. Why?
“A lot of tribes, us included, would prefer to continue gaming under the Indian Gaming Regulatory Act and the model we built,” said Bryan Newland, chairman of the Bay Mills Indian Community. “The truth is we can’t wait for the U.S. Congress to catch up. We were faced with the prospect of evolve or die and that is why we made the practical decision to make this work.”
Michigan is home to 12 federally recognized tribes that operate 24 casinos, still far less than the 109 in California or 39 in Oklahoma. His tribe, like others in the state, is dealing with uncharted waters because they’ll be regulated and taxed by the state. The Michigan Gaming Control Board initially targeted a 2021 launch date for mobile/online platforms but, given falling revenues due to the coronavirus pandemic, is aiming to bump up the timeline to late this year.
The Bay Mills are among the first tribes to link to a sports betting operator, signing with DraftKings, in June.
“Just because we all live in the far reaches of the country, doesn’t mean we’re dumb,” Newland said. “Our ancestors … survived by being smart and savvy. I think as all the companies sit down with us, they realize that real quick.”
Given the location in the northern most reaches of Michigan and the size of its casino, a tribal retail sportsbooks won’t be a big money winner for DraftKings.
“Some of these companies think it’s all just business. But we showed them how important these casinos are to our community,” Newland said.
