Issue No. 2 | February 2021

By Morgan D. Schut

It didn’t take long for the billboards to go up around metro Detroit after online gaming and sports betting went live in Michigan on Friday, January 22 at noon.  As of Monday, the Michigan Gaming Control Board has now authorized 12 operators, who consist of Native American tribes and three City of Detroit casinos, along with their affiliated platform provider to launch internet casino games, internet sports betting, and for one location, internet poker.  The operators and platform providers are approved by the Michigan Gaming Control Board, who will oversee compliance at the three Detroit city casinos while onsite regulation under the tribal casinos is under federal law and the Tribal-State Class III Gaming Compacts between the tribal communities and the State of Michigan.  The three Detroit casinos, who are all operating at a lower capacity in light of the pandemic, reported sports betting produced $4.06 million in revenue in January.  The State also reported that the three Detroit casinos paid $7 million in gaming taxes to the State of Michigan during January compared with $9.7 million for the same period last year.  Since this was only about a week, we will be interested to see how much further the sports betting numbers increase for the three casinos in the City of Detroit, as 30% of the tax revenue will go to the City. 

If you or your business want to provide services for online sports betting or online betting, the MGCB has published an application form for online sports betting and internet gaming on its website. If you have any questions, or would like any assistance, please feel free to reach out to Kemp Klein.

Sources: Detroit casinos report $90.84 million in revenue for January while operating at limited capacity; Michigan Gaming Control Board authorizes Four Winds Casinos, provider partner Pala for Feb. 15 online gaming and sports betting launch; MGCB FAQs on Sports Betting, Online Betting and Fantasy Sports; MGCB Internet Gaming and Sports Betting FAQs for Businesses

Go to Kemp Klein Quick Hits!