The Michigan Gaming Control Board has confirmed that the state will commence with online gaming and sports betting from noon local time on Friday 22 January, with nine operators authorised to “begin a new era”.

The tax and payment rate for online sports betting is 8.4 percent with igaming ranging from 20 per cent to 28 per cent, while the Detroit casinos may also be required to pay a municipal services fee and a development agreement payment to the city.

Taxes collected from the Detroit casinos, Greektown, MGM Grand Detroit and MotorCity, will see 30 per cent allocated to the city of Detroit, 65 per cent to the state Internet Sports Betting Fund or the state Internet Gaming Fund, and five per cent to the Michigan Agriculture Equine Industry Development Fund.

For internet gaming, a hold-harmless provision seeks to help the city recoup lost gaming tax revenue if Detroit collects less than $183m in a fiscal year.

For tribal casinos, online sports betting payments are allocated to the Internet Sports Betting Fund (90 per cent) and the Michigan Strategic Fund (10 per cent).

Internet gaming will see 20 per cent allocated to local jurisdiction governing body for services, 70 per cent to the state Internet Gaming Fund and 10 per cent to the Michigan Strategic Fund.

Other money collected under these acts will be used for appropriated funding for MGCB, The Compulsive Gaming Prevention Fund, The First Responder Presumed Coverage Fund, and The State School Aid Fund.

“The Michigan Gaming Control Board and the state’s commercial and tribal casinos will begin a new era Jan. 22 with the launch of regulated online gaming and sports betting,” commented Richard Kalm, MGCB executive director

“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.

“Online gaming and sports betting will provide the casinos with new ways to engage with customers while the state and local communities will benefit from taxes and payments on wagering revenue.”

Those permitted to begin offering online casino gaming and/or online sports betting are Bay Mills Indian Community/DraftKings; Grand Traverse Band of Ottawa and Chippewa Indians/William Hill; Greektown Casino Hotel/Barstool Sportsbook; Hannahville Indian Community/TwinSpires; Keweenaw Bay Indian Community/Golden Nugget Online Gaming; Little River Band of Ottawa Indians/Rush Street; MGM Grand Detroit Casino/BetMGM; MotorCity Casino/FanDuel; and Sault Ste. Marie Tribe of Chippewa Indians/Wynn.

The days between authorisation and launch will give the operators and platform providers additional time for testing and adjustments before the gaming goes live, Kalm said.

The MGCB expects to authorise additional operators and platform providers in the coming days and weeks as submissions are reviewed to ensure they meet the state’s regulatory requirements. 

“We want the public to have confidence when they place wagers, and our agency has required the providers to prove they meet Michigan’s standards, which are designed to protect the participants,” added Kalm.