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Michigan Issues 15 New Online Sports Betting Licenses
By Shane Addinall Dec 14, 2020 IndustryThe Michigan Gaming Control board is preparing to launch the sports betting industry as soon as possible. It is now up to the operators to prove their worth and pass a rigorous testing phase before they can offer services to the residents in-state.Michigan is working hard to roll out its various sports betting platforms in early 2021. After sports betting and fantasy sports were finally legalised in December 2019, the Michigan Gambling Control Board (MGCB) began doing everything in its power to get the industry underway.
The COVID-19 pandemic has slowed the process a little, so there is still some work to be done.
Preparations and Processes
For a start, 15 approved provisional licenses have been granted to various sites in partnership with the commercial and tribal casinos in the region. This license simply reserves the spot for the respective operator, though a few processes must still be completed before they can legally trade.
Prior to launch, the respective licensees must have their platforms, internal controls, and gaming software vetted to see if they meet regulation standards. This is also done to ensure that they comply with suitable gaming integrity levels.
The final process of key staff licensing must be secured for certain employees involved in the management of each platform too.
Richards Kalm, Executive Director of MGCB, had this to say on the subject:
“The platform providers still must meet other regulatory requirements before online gaming and sports betting can launch in Michigan. The launch date will depend on how quickly they can fulfil the requirements. The platform providers’ ability to meet the requirements of the laws and rules will determine which entities can be licensed for launch first.”
The gaming board hopes to have a few operators up and running by mid-January, as long as all protocols are adequately in place on their platforms. The testing process is vital to ensuring that players will enjoy a seamless and safe gaming experience.
While the regulator hopes to streamline the roll-out of services, it is not prepared to compromise on its standards.
In the meantime, the operators may make their betting apps available on the various app stores, so that prospective players may download and register their accounts. This way, once the bookmakers have the final green light, bettors can start using the services promptly.
The Legalities Involved
The Michigan Gaming Control and Revenue Act of 1996 was narrowly approved by 51.51% of voters. This vote authorised a list of gaming options that could be legally played in the state at 3 commercial casinos or at 23 tribal casinos registered in the region.
Unfortunately, there was no mention of sports betting, which meant that amendments would have to be made to the law before it could be enjoyed legally.
In December 2019, Governor Gretchen Whitmer finally signed sports betting into law. The new legislation includes allowances for mobile and land-based betting under the proviso that the services are not offered independently.
Instead, all sports betting services would have to be linked to existing registered casino operators already trading in Michigan.
Set to Offer the Action
As a result of the laws, prominent bookmakers have partnered up with casino operators in the state to service the region legally. Those who have been granted initial licensing include:
- Penn Sports Interactive (Barstool)
- BetMGM
- FanDuel
- American Wagering (William Hill)
- Crown MI Gaming (DraftKings)
- PointsBet Michigan
- TSG Interactive US Services (Fox Bet)
- Churchill Downs Interactive Gaming (Twinspires)
- Gan Nevada
- Golden Nugget Online Gaming
- NYX Digital Gaming
- Parx Interactive
- Rush Street Interactive MI
- WSI US (Wynn Sports)
- Sports Information Services (Kambi)
It’s great news for Michigan coffers that bets will be accepted in the state. At the moment, droves of residents make use of sports betting services in the state of Indiana and will probably continue to do so until the industry is up and running on their doorstep.
This new segment of the industry is sure to help strengthen the economy of the state government, especially after the ravages of 2020.
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