Michigan looks to online gambling for new ways of revenue

Online sports betting and gambling could launch in Michigan by Autumn if emergency rules are accepted

The US state Michigan is looking at a deficit of $1.5bn amid the COVID-19 pandemic. Land-based sports betting opened in Michigan just a few days before the lockdown started in in mid-March. The three commercial casinos generated just $105,548 in retail sports betting revenue in March before the shut down. 

The governor should recognise the need to take any steps that can bring new revenue to the state.

The state is now looking at new ways of revenue generation and it seems just at the right time. The Michigan Gaming Control Board (MGCB) is asking the government to allow emergency rules to speed up the launch of online gambling. Online sports betting and gambling could launch in Michigan by Autumn if these emergency rules are accepted. 

John Pappas who has collaborated on the regulations with the MGCB, said: “I think anywhere between September and October is a reasonable time frame, but it is not known if the governor will now allow for emergency rules. Several stakeholders are pushing for it, given the current economic crisis. The governor should recognise the need to take any steps that can bring new revenue to the state.” 

The proposed legislation has lent on laws in New Jersey and Indiana with the license application fee costing just $1,000 with a $500 renewal fee.

Michigan’s only horseracing track is already approved to offer online race wagering, although it will have to wait until racing resumes post-pandemic.

The track, like all of Michigan’s non-essential businesses, was ordered closed by Gov. Gretchen Whitmer in March but in preparations for the big opening the management is already looking for online betting tech partners.

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