Michigan legalizes sports activities betting — the state might generate $eight billion a yr in sports activities bets, in keeping with one analyst
On Friday, Michigan will become the 15th state to accept legal online sports betting after receiving approval from the Michigan Gaming Control Board.
“Michigan residents love sports and, following inquiries received, eagerly await using mobile devices to place bets on the commercial and tribal casinos,” said Richard S. Kalm, executive director of the Gaming Board, in a statement. “Online gaming and sports betting offer casinos new ways to connect with customers while the state and local communities benefit from taxes and payments on wagering,” he added.
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Michigan passed law in 2020 to legalize sports betting and will begin betting online today as several casino operators will start accepting bets by noon.
Many of the Michigan debut online casino operators are big brands in the sports betting industry like DraftKings DKNG (-1.92%).,
William Hill WIMHY, -0.25%,
Bar stool Sport PENN, + 2.07%,
BetMGM MGM, -0.44%,
Wynn WYNN, -1.57% and FanDuel.
Online sports betting is a game changer for betting income. Sports betting for people only is a small fraction of online betting in most states. In New Jersey, where most of the US money is often spent on sports in one state, about 90% of all bets are made online, according to public figures.
How popular could sports betting be in Michigan? Betting analyst Dustin Gouker estimates the state could generate $ 8 billion in sports betting and gross revenues of $ 500 million for operators annually.
“Michigan is the second largest state in terms of population that has legalized online sports betting and online casinos and poker, after only Pennsylvania,” said Gouker. “Michigan’s business-friendly tax rate and competitive license fees will also attract operators. And with a solid tribal and commercial casino infrastructure, Michigan should be ready for quick success. “
If such estimates come into play, those amounts could generate up to $ 40 million annually for the state of Michigan, according to Gouker.
Many states are considering legalizing sports betting as a source of income, especially during the COVID-19 pandemic, which has seen government budgets become tight. Even New York Governor Andrew Cuomo, who had long resisted the idea of legalizing online sports betting, was convinced of the events surrounding the COVID-19 pandemic.
Before placing bets, it is important to look up the betting rules in your state as each state that has legalized online betting has its own, often peculiar, rules. For example, sports betting is legal in New York, but only in four retail casinos in New York state. Virginia has a bill that restricts hometown college team wagering, and Mississippi lets you wager online, but only when you are in a casino.
The federal government gave states the legislative power to legalize sports betting when the Supreme Court ruled that the sports betting ban was unconstitutional in 2018.
According to the American Gaming Association, 20 states in addition to Washington, DC currently offer sports betting. A few more states have legalized bets but do not currently accept bets.