High hopes for Michigan’s online gambling market

Michigan’s online gambling market could see $650m in annual revenue in its first year after launch in 2021.

US.- Analysts at MichiganSharp.com predict that in the first year of legal online wagering in the state, online casinos and poker could generate $250 million in revenue and sports betting $400 million.

Online casinos and poker revenues will be taxed at 20-28 per cent through a tier-system depending on earnings.

Online retail and sports betting is to be taxed at 8.4 per cent on gross revenue, with the exception of Detroit’s three casinos which will be taxed a further 1.25 per cent.

Based on the figures, analysts predict that the state of Michigan could gain up to $93.6 million in tax revenues from online gambling in the first year after its launch in 2021.

Analyst Geoff Fisk said: “The convenience and ease of access of online sports betting opens up a whole new world of opportunities for both bettors and sportsbook operators.

“All of the pieces are in place for Michigan to become a major hub for sports betting and online gambling.

“Virtually all of the state’s casinos should want a piece of the new market, especially with the attractive tax rates.”

Michigan has 26 casinos – three commercial casinos in Detroit and 23 tribal casinos. The Detroit casinos re-opened Wednesday last week, but are predicted to face strong headwinds as the coronavirus pandemic continues.

All 26 casinos in the state are eligible to apply for sports betting and internet gaming licences through the Michigan Gaming Control Board.