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Michigan regulators have given the green light for online gambling and online sports betting to start at noon Friday.
The Michigan Gaming Control Board announced Tuesday that it approved the first nine casinos and their online platform partners to launch at that time, with additional approvals expected in coming days.
The Legislature and Gov. Gretchen Whitmer legalized internet gambling and sports betting in December 2019, and regulators spent all of last year devising rules and ways to monitor and license the new platforms.
The minimum age for online gambling and sports betting is 21. Those taking part in sports betting do not need to be Michigan residents, but must be situated within the state's borders when placing bets via smartphone app or computer. Those from Ohio, where online sports betting isn't legal, could therefore use Michigan's new betting apps if they do so in Michigan.
В© Charles Krupa, Associated Press DraftKings logo is displayed at the sports betting company headquarters in Boston.
The nine platforms and their associated operators are:
FanDuel, for MotorCity Casino BetMGM/Roar Digital, for MGM Grand Detroit Penn Sports Interactive/ Barstool Sportsbook, for Greektown Casino DraftKings, for the Bay Mills Indian Community William Hill, for the Grand Traverse Band of Ottawa and Chippewa Indians TwinSpires, for the Hannahville Indian Community Golden Nugget Online Gaming, for the Keweenaw Bay Indian Community Rush Street, for the Little River Band of Ottawa Indians Wynn, for the Sault Ste. Marie Tribe of Chippewa Indians В© FanDuel FanDuel is one of several online sports betting platforms that will go live in Michigan.
Richard Kalm, executive director of the gaming control board, said the days between Tuesday's authorization and Friday's launch give the online platforms time to do testing and make adjustments. Some platforms, such as FanDuel, DraftKings and BetMGM, have been advertising for weeks and allowing users to sign up, but not place bets.
"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," Kalm said in a statement.
FanDuel's Chief Marketing Officer Mike Raffensperger said that about 90% of the company's users in markets where sports betting is already allowed use FanDuel through its mobile app.
Raffensperger said legalized online sports betting is a good because it brings the activity into the light of day and prevents people from getting outright cheated.
"Frankly speaking, (sports betting) is a marketplace that existed prior to us launching legally," he said. "It just happened in (the) black market and the gray market with offshore accounts where maybe you’ll get your money out, maybe you won’t."
In-person sports betting began in Michigan last March but quickly went dark when the Detroit casinos closed amid the initial surge of the COVID-19 pandemic. The sports betting lounges reopened in the summer, closed again Nov. 18 and have remained open at reduced capacity since Dec. 22.
В© scyther5, Getty Images/iStockphoto Man using phone to bet on sports.
The tax rate and the tribal payment rate for internet sports betting is 8.4%.
The tax and payment rates paid by the casinos for general internet gambling � not including sports � will range from about 20% to 28%, based on adjusted gross receipts.
Raffensperger of FanDuel said he believes that online sports betting will not result in the closure of the still-new sports-betting lounges in Detroit's casinos.
"There's nothing like the experience of a sports book � watching a great game on giant TVs and being there with your friends," he said. “COVID has made that difficult . but it’s a wonderful, fun experience.”


Online gaming, sports betting off to roaring start in Michigan.
In-person sports betting in Michigan launched in March. Last week, bettors were able to place wagers online. (Photo by Edward Pevos | MLive)
Watching last weekend’s NFL conference championship games and other sporting events was a more enthralling experience than usual for Jack Abate, of Royal Oak.
Abate, 31, was one of thousands of Michiganders to take advantage of the highly anticipated launch of online gaming and sports betting in the state. At noon Friday, 10 Michigan casinos and their platform providers went live, offering either online sports betting, online gaming, or both.
By all accounts, the first few days were a huge success.
“There were no real reports of any outages -- maybe some lag here and there -- but nothing overly out of the norm in that regard. And also you had a great weekend for an opening. You had the conference championship games and you had the added bonus of a high-profile UFC fight (Dustin Poirier vs. Conor McGregor). So all in all, with the exception of maybe starting on Super Bowl Friday or the first round of the NCAA Tournament, you’re not going to get a much better opening slot.”
Michigan Gaming Control Board executive director Richard Kalm said revenue and wagering numbers from the opening weekend are not yet available, but there was a high level of activity.
Michigan and Virginia both launched online gambling late last week and combined for 7.5 million online gambling transactions across 400,000 accounts, according to data from GeoComply, which provides geolocation tracking services for the internet gaming industry.
Michigan and Virginia accounted for 25 percent of the overall volume last weekend across the U.S. market, which encompasses 17 states with legal online betting.
With Virginia launching just two operators, Altruda estimated two-thirds of the weekend’s new accounts and transactions were from Michigan.
Abate was one of many to partake in the jam-packed sports weekend. He said he signed up with two operators and placed about 10 or 12 bets, wagering on the moneyline and points total for the football games while focusing on props and various boost bets on basketball and hockey games.
“It kind of gives you a little bit more incentive to tune into a game that you may not have paid attention otherwise,” Abate said. “I’m not a big fancy guy for basketball, hockey or baseball, but now with online sports betting, it makes it a little bit more enjoyable to maybe turn on a game when any of my teams aren’t playing and sit down and watch maybe root for an over/under, a prop bet or something like that.
“Moving forward, I think people are gonna tune in to maybe an offseason sport that they may not be into as much now they can put some money on the line, have a little bit more skin in the game.”
Mike Raffensperger, chief marketing officer of FanDuel, which operates an online sportsbook and casino in nine other states, said he is encouraged by the company’s start in Michigan.
“Honestly, it was a kick-(butt) weekend,” Raffensperger told MLive. “I think our projections have proven right. Michigan has launched with incredible fanfare. I think we have exceeded our expectations in terms of consumer appetite for both our sports betting and our online casino product.”
Raffensperger declined to share specific numbers but said Michigan was “one of if not our most successful state launch.”
Penn National Gaming, Inc. which has partnered with Barstool Sportsbook, said on Twitter that it received more than $2 million in first-time deposits from players over the weekend.
Meanwhile, BetMGM reported that it had more than 200,000 successful logins by customers and more than 2 million casino spins in the first seven hours of going live.
“BetMGM’s launch in Michigan has been our strongest launch yet, by some margin,” BetMGM CEO Adam Greenblatt said in a statement. “The strength of demand has been impressive in both sports and gaming.”
Some of the most popular promotions were near-lock bets some operators were offering. For example, DraftKings offered a prop bet where consumers could double their money (up to a certain amount) if the Pistons made a single 3-pointer in one of their recent games.
FanDuel paid more than $1.7 million to Michigan customers on odds boost wins over the weekend, such as doubling the consumers’ money if the Pistons scored more than 10 points in the first quarter.
“They made it really fun and easy, whether it was your first time gambling or whether you’re a seasoned guy at sportsbook,” Abate said. “With tailoring things specific to Michigan, like Pistons prop bets or Red Wings, Michigan basketball and all that, I enjoyed that. The boosts made it fun.”
The online sports betting rate in Michigan is 8.4% after winnings are paid out, one of the lowest among states with legal sports betting. The tax and payment rate for internet gaming ranges from about 20% to 28%, depending on how much money a casino generates from online gambling.
Because of the competitive tax rates in the state, operators are enticed by the market. Kalm said five more operators are expected to receive MGCB approval shortly, giving consumers more options.
Overall, Altruda believes Michigan will be a top-five market in the country, along with New Jersey, Pennsylvania, Illinois and Nevada. He said he expects Michigan to reach a monthly handle of about $500 million, but noted that could vary based on different sports seasons.
Online gaming has the potential to bring in tens of thousands of dollars in tax revenue for the state, but Kalm said more time is needed to get an accurate projection.
“You’re going to need a longer picture at this,” he told MLive. “It’s a few weeks before the Super Bowl. It was a big betting weekend for the football playoffs, March Madness is coming, so there’s a lot of activity going on. You really have to look at this on a quarterly basis, spread it out a little bit more to see where Michigan is going to be and how they are going to compare to other states and what the actual revenue numbers are. And we don’t have all our operators up yet.”
Regardless, launching before the Super Bowl was paramount.
“It’s huge in the sense that you’re getting in the largest single betting sports event of the year,” Altruda said. “You’re getting attention, you’re attracting eyeballs, you’re going to get the normal sports bettors, but you’re also going to get the average sports bettors. The ability to attract the average bettor, who may only place one or two wagers at the same time, is now a registered user that you can reach out to and still draw from as a potential base in addition to the sports fans who are going to make multiple bets daily, monthly.”
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As Sports Gambling Grows, So Do Appetite-Whetting Sure Bets.
Online gambling sites are offering can’t-lose propositions, giving away easy money to attract new customers to a nascent multibillion-dollar industry. These come-ons should reach a peak just ahead of the Super Bowl.
Published Feb. 2, 2021 Updated Feb. 3, 2021.
You’ve heard it all your life: There is no such thing as a sure thing. Well, that was before betting on sports could be legal anywhere in the United States. Now it’s a free-for-all of easy money as sports books in search of new customers hype their services on sports broadcasts, social media and drive-time air waves.
Last week in Michigan, where online betting recently became legal, the gaming company FanDuel was happy to give new customers their beloved Detroit Pistons and an eye-popping plus 159.5 points against the Los Angeles Lakers. Bettors didn’t need the can’t-lose points � Detroit won, 107-92, costing the sports book $2 million in payouts.
For FanDuel, it was money well spent. For about $45 a head, the site signed up nearly 47,000 new Michigan bettors.
In the gambling industry, can’t-miss propositions and cash handouts are time-tested ways to build market share quickly. These come-ons will peak just ahead of this weekend’s Super Bowl, the holiest of occasions in the religion of sports and the most-watched television show in the United States.
With DraftKings’ “Big Game No Brainer,” a new user will be able to turn $50 into $100 if either Tampa Bay or Kansas City scores a single touchdown in Sunday’s game. “Win Terry Bradshaw’s Money,” brought to you by FOX Bet, has already become a staple of N.F.L. programming on the network.
Bookmakers have said the sports betting market is maturing faster than they anticipated, with an unfortunate and unlikely assist from the economic devastation left by the coronavirus pandemic.
“The tipping point is here. What we went through last year is the driver,” said Kip Levin, the chief executive officer of FOX Bet. Even with the disruption in sports, Levin said, 14 betting states collectively took in more than $1 billion in revenue in 2020, demonstrating that sports gambling can bolster economies in new markets.
“State officials recognize this and now they need revenues for their state,” he said.
Less than three years after the Supreme Court struck down a federal law that prohibited sports gambling in most states, betting on games is legal and underway in 20 states and the District of Columbia.
The more than $1 billion in 2020 revenue is projected to grow sixfold by 2023, according to a study by Eilers & Krejcik Gaming, a research and consulting firm. If all 50 states permit sports betting, revenues will surpass $19 billion annually, the study projects.
Multibillion-dollar industries will beget multibillion-dollar marketing as bookmakers, media companies and tech entrepreneurs have rushed in to claim their place in the market.
“Sports betting now is like water and finding its way into everything, especially now when operators are trying to attract new customers,” said Chris Grove, a partner at Eilers & Krejcik. “In a mature market like the United Kingdom, a mid-tier bookmaker will spend about 40 cents of every dollar acquiring and retaining new customers. Here we’re seeing a 100 percent or more spend on each buck.”
Last year, bookmakers spent more than $200 million on television advertising alone, according to the advertising information company MediaRadar, and since mid-June of 2020 they have increased their television spending by 82 percent over the previous year. Sports gaming executives have said they expect to double that amount on advertising and promotions by year’s end, as betting operations move closer to opening in five more states � Washington, North Carolina, Louisiana, Maryland, and South Dakota.
Gov. Andrew M. Cuomo of New York, who is banking on the State Legislature to approve mobile sports betting this spring, has said it could bring hundreds of millions of dollars into state coffers as New York is facing a multi-billion-dollar deficit. Despite his enthusiasm, Cuomo said he wanted the state to have tight control over the betting platforms, likening sports gambling to the state-run lottery.
“This is not a moneymaker for private interests to collect just more tax revenue,” he said. “We want the actual revenue from sports betting.”
No matter what deals are reached in New York, betting on sports has already demonstrated a grip on American culture and a capacity to assault our senses.
Sports gaming executives acknowledge there is a fine line between seducing new customers and exhausting them. Officials at DraftKings and FanDuel said they had learned from mistakes they made trying to bring daily fantasy sports to the market.
In 2015, the two sports books blanketed television with advertising, spending more than $100 million each, consistently ranking among the top companies each week in airtime purchased. During the N.F.L.’s opening weekend alone, DraftKings and FanDuel spent more than $27 million for about 8,000 television spots, according to data from iSpot.tv, which measures national TV advertising.
The aggressive marketing helped lift each company’s valuation to $1 billion, but it also brought scrutiny from state attorneys general who were not convinced the fantasy games were legal. With expensive legal challenges and a backlash among customers, both businesses were badly damaged.
“We spent a lot of money. It was not the wisest thing to do,” said John Avello, the director of the sports book at DraftKings. “It did make us well known. Now we do it smarter.”
Mike Raffensperger, chief marketing officer at FanDuel, said sports books were merely following in the footsteps of Netflix, Uber and other digital companies that pioneered new markets.
This time around, FanDuel wants to become part of the sports media landscape by exploiting social media and making exclusive content partnership deals with networks like TNT and Entercom Radio, one of the country’s largest owners of sports talk radio stations.
With sports betting measures under consideration in heavily populated states such as California, Texas and Florida, sure-thing bets are certain to be dangled before new customers for years to come. Sports betting and its place in American culture are here to stay.
“What the public thinks is going to happen in a game, which team is going to cover the spread, has become part of the larger narrative of sports,” Raffensperger said. “Betting on games has become part of the sports ecosystem.”


Online gambling and sports betting goes live in Michigan.
You must be at least 21-years-old to participate.
DETROIT – Starting at noon Friday, people in Michigan could legally place bets on sports teams or play casino games online.
It’s expected to be a big money maker for casinos and the state.
It’s been billed as a new dawn of online sports gambling, but really it is the COVID-recovery plan for the gambling industry.
It all starts with downloading your favorite gambling app to your phone or smart device. Different casinos have partnered with different apps.
You’re going to have to give casinos a lot of your personal information. At sign-up, they all require GPS tracking to make sure you’re betting from inside Michigan.
Some will ask for your Social Security number.
Gaming analyst Dan Kilbridge offers some advice for the uninitiated.
“I would definitely recommend starting slow, researching as much as you can and then getting into it,” Kilbridge said. “But being cautious is always good.”
He recommends gamblers put in the research to see which app is best for your interests and tastes.
If you’re feeling emboldened with bonus points or cash and you think you know sports and understand money lines, point spreads, over/unders and parleys, Kilbridge said you should think again.
“Be careful of the big parlays,” Kilbridge said. “They’re popular and I know they get a lot of attention -- particularly on social media -- but once you get into the huge, it’s really a shot in the dark and very difficult. Especially for beginners.”
Kilbridge said it’s incredible the number of sports residents can bet on, the kind of bets one can place, but also warned this can get addicting and you should only bet what you can afford.
The operators authorized to begin online offerings Jan. 22 are:




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