Tag: Michigan

DraftKings Sportsbook Lands Partner For Michigan Sports Betting

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A major player in the world of legal sports betting has found an entrypoint into Michigan.

DraftKings Sportsbook announced it has partnered with Bay Mills Indian Community, a tribe in the Upper Peninsula that operates two casinos in the state.

As a result, ahead of Michigan launching online sports betting, DraftKings gains an avenue to its eighth state to offer legalized online wagering.

DraftKings pads state sports betting portfolio

The daily fantasy sports giant began its quick rise to power in 2018 by making its debut in New Jersey. It has since taken over as a dominant force in the Garden State and has aggressively expanded as other states passed legislation to regulate wagering.

Since its New Jersey origins, DraftKings Sportsbook has started operations in the following states:

  • Pennsylvania
  • West Virginia
  • Indiana
  • New Hampshire
  • Iowa
  • Colorado

In addition, DraftKings boasts branded retail sportsbooks in Colorado, Iowa, New Hampshire, New Jersey, Mississippi, and New York.

DraftKings, which recently started to offer DFS in Michigan, became a publicly traded company toward the end of April and has become quite successful as stocks have risen from $17 to $41 during that stretch.

The company certainly has high expectations for Michigan sports betting, as stated by Ezra Kucharz, chief business officer for DraftKings, in the press release.

“The Great Lakes State presents a number of gaming opportunities and we look forward to collaborating with Bay Mills to provide residents with the best-in-class experience DraftKings is known for.”

Bay Mills gets into the swing of sports betting

As indicated, DraftKings will operate a branded brick-and-mortar sportsbook at Bay Mills Resort & Casino, the longest-running casino in Michigan.

The Bay Mills tribe stood as one of 15 partnerships available for sportsbook operators and actually became one of the later land-based properties to land such a partner.

That said, while late, Bay Mills gained quite an asset in DraftKings.

After all, competing properties boasted renowned sportsbooks as FanDuelWilliam HillFox Bet, BetMGM and PointsBet.

With DraftKings, Bay Mills wields a powerful tool as the company features a wide customer base and great familiarity. For good reason, Bay Mills has expressed excitement for the next step.

“We are excited about our new partnership with DraftKings,” Bryan Newland, tribal chairman for the Bay Mills Indian Community, said in the release.

“Expanding on what entertainment options we can offer at Michigan’s longest operating gaming facility is always our goal. Our new on-site DraftKings Sportsbook will be one more great reason for Michiganders to vacation with us in the Upper Peninsula.”

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A Win For Michigan, A Win For Pennsylvania, A Loss For Wynn

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‘Twas week before Christmas, and all through the nation, sports betting bills passed through state legislation.”

With the swoop of a pen, Gov. Gretchen Whitmer made wolverines cheer, as the leader in Michigan gave legalized wagering the all-clear.

Another state, Pennsylvania, hung its stocking with braggadocios care. You would, too, if you took in $1 billion over the past year.

Many states and stakeholders have much to boast about. When Christmas day arrives, most will see gifts and joy abound. But one stocking is drooping, nearly touching the floor; with this much coal already for Steve Wynn, could it take much more?

End of obligatory holiday poem. Let’s get to the biggest news of last week.

Michigan sports betting is officially a go

Once again, the week’s biggest news involves Michigan. And fittingly, the week’s biggest news came on a Friday.

Whitmer signed off on the Lawful Sports Betting Act, among other bills, to officially legalize Michigan sports betting.

In addition to regulated wagering, Michigan saw the legalization of online casinos, online poker and daily fantasy sports. Big day for the Big Mitten. All told, the package of bills became the largest gambling expansion in the state’s history.

As it’s laid out, Michigan’s three commercial and 23 tribal casinos would be permitted to pursue sports betting licenses, shelling out a combined $150,000 for application and licensing. They would also be obligated to pay an 8.4% tax on adjusted gross sports betting receipts; commercial casinos would pay an additional 1.25% tax to the city of Detroit.

The man who correctly predicted Whitmer would sign off on legislation before Christmas, Sen. Curtis Hertel Jr. also told Legal Sports Report that Michigan could roll out retail sportsbooks in time for March Madness.

Pennsylvania’s sports betting capital? Billa-delphia

Pun stretch or not, facts rarely tell lies.

A year after Hollywood Casino opened the doors to Pennsylvania’s first retail sportsbook, the Keystone State has exceeded $1 billion in handle. Total wagers in November set a single-month record in Pennsylvania as the public laid down over $316 million.

That total actually pushed PA’s lifetime handle to some $1.1 billion. And with more operators still expected to join the market, that second billion should come in short order.

The likes of FanDuel Sportsbook, a relatively late-comer to the PA party, has taken control of about 36% of the marketplace. For perspective, Rivers Philadelphia accounts for around 21% of wagers placed.

Pennsylvania’s lofty tax rates (a 36% take) obviously provides a hit to the wallet of operators. Even so, they still registered $75 million in profits during that first year. So, not too shabby.

Nearby New Jersey will always remain the standard, especially for Pennsylvania. As PlayPennsylvania laid out, the Garden State crossed the billion-dollar finish line seven months into operations. But Pennsylvania continues to expand. It boasts 12 retail sportsbooks and eight betting apps. But those numbers will surely change in the coming months.

Losses abound for casino mogul Steve Wynn

The L’s keep piling up for good ol’ Steve Wynn.

The former Las Vegas magnate has faced a mountain of allegations regarding sexual misconduct in the workplace that ultimately led to his resignation. And last week, the Nevada Gaming Commission declared that it holds jurisdiction to discipline Wynn further. His attorneys argued otherwise, seeing as the 77-year-old, who has denied these allegations, no longer works in the state gambling industry and now lives in Florida.

Unsurprisingly, Wynn’s attorneys intend to appeal to the state Supreme Court as they question whether the gaming commission actually has jurisdiction.

In any case, Wynn just can’t win.

His company, Wynn Resorts, was fined $20 million by the NGC last year for failing to look into claims of sexual misconduct made against Wynn before he resigned. Interestingly, regulators in Massachusetts levied another $35 million in fines against Wynn Resorts for not disclosing the years of allegations against Wynn.

Last month, Wynn agreed to pay $20 million in damages, and insurance carriers will pay $21 million on behalf of current or former employees of Wynn Resorts. Per the agreements, none of this is an “admission of wrongdoing.”

Overall, it looks like it’s a stocking full of coal this year for the disgraced mogul.

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Michigan Governor Signs Bill Legalizing State Sports Betting, Online Gaming

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Santa came early in Michigan.

Early FridayGov. Gretchen Whitmer signed the Lawful Sports Betting Act that legalizes Michigan sports betting. She also put pen to paper on bills to green-light online casinos, online poker and daily fantasy sports.

Whitmer’s signatures pushed across the finish line this collection of bills that modernize the state’s gambling industry.

After governor approval, Michigan sports betting is en route

To be fair, Whitmer has long believed legalized sports betting should enter Michigan. As noted, however, she stood beside a higher tax rate from which stakeholders and lawmakers frequently tried to talk her down.

After months of rebuffing proposals to regulate wagering, and a year after the previous governor vetoed a similar bill, Whitmer finally came around with this latest package of bills.

As a result, Michigan becomes the ninth state in 2019 to legalize sports betting and the 20th state overall. It also becomes the fifth state to legalize online casinos and the sixth state to legalize online poker.

All told, this package of bills stands as the largest expansion of gambling ever seen in the state of Michigan.

A breakdown of Michigan sports betting

Earlier this month, Sen. Curtis Hertel Jr. predicted to Legal Sports Report that the governor would sign off on these bills before Christmas. While Whitmer cut it close, she did, in fact, prove the senator correct.

As Hertel told LSR, the state aims to launch its retail sports betting industry in time for March Madness.

Under the newly signed bill, Michigan’s three commercial and 23 tribal casinos will be allowed to apply for brick-and-mortar and online wagering. Fees to do so include: $50,000 for application; $100,000 for licensing; and $50,000 annual renewal.

Operators will be limited to just one online sportsbook in the state, and all in-play wagers offered must use official league data.

As a perk for operators, Whitmer conceded to a lower tax rate. After advocating for upward of 15% in taxes, the governor signed off Friday on an 8.4% rate on adjusted gross sports betting receipts. Commercial casinos will pay an additional 1.25% city tax to Detroit.

More iGaming on the way in Michigan

As indicated, Whitmer also signed off on bills to legalize online casinos, online poker and daily fantasy sports.

Representing something of a compromise from lawmakers in order to establish lower sports betting taxes, iGaming will incur higher tax rates than initially proposed.

That tiered structure will range from 20% to 28%.

Regardless, each casino in the state will be permitted to pursue licenses for both online casinos and online poker, with each property afforded one brand in each vertical.

Cost for licensing mirrors the sports betting model: $50,000 for application; $100,000 for licensing; $50,000 for annual renewal.

Also similar to sports betting, daily fantasy sports will be taxed at an 8.4% rate. Operators, though, will only have to shell out $20,000 for initial licensing and $5,000 for annual renewals.

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