PointsBet and The Stars Group first to enter Michigan online gaming market
In December, Michigan passed a legislation package that will see sports betting as well as online gaming offered in the state. This month, the first operators for the market have secured access. PointsBet and The Stars Group are the first to sign deals to offer online services in the region, cutting major deals with land-based operators.
Deal Detail:
PointsBet will be working with Lac Vieux Desert Band of Lake Superior Chippewa Indians (LVD) and have signed an amazing 20-year access deal. The Stars Group signed a similar deal, choosing to work with the Little Traverse Bay Bands of Odawa Indians.
For PointsBet, the brand will be able to launch their own online sportsbook in the state as well as online casino. They of course will have to be granted regulatory approval first. The group is also negotiating with their partner to open a retail sportsbook in Watersmeet on Michigan reservation lands.
According to LegalSportsReport.com…
For The Stars Group, they have a similar deal and will use their Fox Bet brand to offer services. However, Stars will be paying fees based on a revenue share agreement. Robin Chhabra, the CEO of Fox Bet, commented that the group is excited to be working with the Odawa tribe as it further strengthens market access as Fox Bet continues to build on their business into one of the leaders in the emerging online betting and gaming market in the United States.
Legalized Market:
Michigan Governor Gretchen Whitmer signed legislation legalizing sports betting and online casino gambling as 2019 came to an end. The measure allows each of the casinos in the state to apply for sports betting licensing. Tribal venues are subject to a tax on revenues of 8.75%. The three commercial casinos in Detroit must pay a higher tax rate of 12%. This includes a duty tax from the city of 3.75%.
With online casino gaming, legislation was finally approved by the governor thanks to a tiered tax system. The system will start taxes at 4% and then top out at 23%. For the Detroit casinos, the online tax revenue percentage can go as high as 26.25% due to the city imposed tax.
