Michigan Anticipating Huge Sports Betting Numbers
January 2, 2020
Just two weeks after the Michigan state legislature has passed legislation to legalize sports and online gambling, much is being expected from sports bettors is the region. According to PlayMichigan.com analysts, the state might well become one of the the largest legal sports betting markets in the country within just a couple of years.
After Gov. Gretchen Whitmer signed HB 4916, Michigan became the 13th state to formally legalize sports betting for its residents. The state also became the 5th state to legalize online casino and sports gambling. With a target of March Madness 2020 (NCAA basketball tournament) for the start of accepting live wagers, there's much anticipation that the betting windows and online sports book will be among the busiest in the nation.
According to PlayMichigan.com analysts, Michigan has the potential to generate as much as $7 billion to $8 billion in annual sports betting revenues. With an effective tax rate of 8.4% going to the state, the amount of tax revenues that would be dumped into the state's coffers each year would certainly justify the legislature's decision to move forward with the sports and online gambling legislation.
In regards to the affect of such a low tax burden, Dustin Gouker, chief analyst for PlayMichigan.com stated in a press release: “Michigan is the second-largest state in terms of population to have legalized online sports betting and online casinos and poker, behind only Pennsylvania. Michigan’s business-friendly tax rate and competitive licensing fees will attract operators, too. And with a solid tribal and commercial casino infrastructure already in place, Michigan should be poised for quick success.”
Model for the Future
While other states have implemented or are considering implementing higher tax rates, there's something to be said for coming to market with a rate that should have great appeal to the best sports betting operators. If nothing else, it should help Michigan's sports betting market mature quicker than say what Pennsylvania has experienced. The fact that neighboring states like Minnesota, Wisconsin, Illinois and Ohio have yet to pass sports betting legislation only figures to help Michigan's cause with only Indiana standing in the way as competition.
Surely, any states that are still in the legislative phase regarding sports and online gambling will want to keep it's collective eyes on Michigan's revenue performance in 2020. This Michigan model could well end up being the one that gives each state the best chance for success.