A new era of online betting is set to dawn in the US state of Michigan after the Michigan Gaming Control Board confirmed that the state will permit online gaming and sports betting from noon local time on Friday 22 January.

Nine betting operators have been authorised to launch this week. All will be paying a tax rate of 8.4% for online sports betting while igaming tax will range from 20% to 28%. Casinos located in the city of Detroit may also have to pay a municipal services fee and a development agreement fee to the city.

The money collected in taxes from the three Detroit casinos: Greektown, MGM Grand Detroit and MotorCity, will be allocated to the city of Detroit, the state Internet Sports Betting Fund, the state Internet Gaming Fund, and the Michigan Agriculture Equine Industry Development Fund.

The city of Detroit also has the safeguard of a hold-harmless provision to enable it to recoup any lost gaming tax revenue if it collects below $183 million during a single fiscal year.

In the case of the state’s tribal casinos, online sports betting payment tax revenue will go to the Internet Sports Betting Fund and the Michigan Strategic Fund, while tax revenue derived from internet gaming will be split between the Strategic Fund, the Internet Gaming Fund and a local government body that oversees local services. It is also reported that revenue from the new online sector will help to fund the Compulsive Gaming Prevention Fund, The First Responder Presumed Coverage Fund, and The State School Aid Fund.

Speaking about the new launch, the MGCB Executive Director Richard Kalm, said that the state and its residents were looking forward to the new era:

“Michigan residents love sports and, judging by inquiries we’ve received, eagerly anticipate using mobile devices to place bets through the commercial and tribal casinos.”

He added that they hoped that online gaming and sports betting would give casinos new opportunities to engage with their customers and that the state and local communities would benefit from taxes and payments made from betting revenue.

A number of local casino venues have been given permission to offer sports betting and/or internet gaming, including the Bay Mills Indian Community, through a partnership with DraftKings, and Grand Traverse Band of Ottawa and Chippewa Indians, who have signed up with UK operator William Hill to provide their sports betting platform. Greektown Casino Hotel, Hannahville Indian Community, Keweenaw Bay Indian Community, Little River Band of Ottawa Indians and MGM Grand Detroit Casino are among the other venues to launch their online betting this week.

According to Kalm, the period between the authorisation and launch date would enable operators and platform providers to have extra time to test and make adjustments before going life. In addition, the MGCB say that they hope to licence further providers over the next few days and weeks.

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