Online Michigan sports betting begins "early 2021" after regulator granted 15 provisional licenses

After beginning the process of licensing online gaming suppliers in May and beginning in-person sports betting in March, the Michigan Gaming Control Board (MGCB) has now approved provisional licenses for 15 platform providers to support both commercial and tribal casinos' online gambling and sports betting offerings in the state of Michigan. This comes after the MGCB launched in-person sports betting in March.

The Michigan Gaming Control Board (MGCB) has not made it clear up to this point whether the state's online sports betting and iGaming markets will start before the end of 2020 or in 2021. On the other hand, it would appear that we have acquired some further insight, since the website of the regulatory body now mentions "early 2021" as one of the "target dates" for the introduction.

Successful applicants:

Among the provisional permits that were issued on Thursday are the following:

Barstool Sportsbook (Penn National Gaming Penn Sports Interactive arm)
BetMGM (the brand operated by the Roar Digital joint venture between Entain, formerly GVC Holdings, and MGM Resorts International)
BetRivers (Rush Street Interactive)
Churchill Downs (TwinSpires division/BetAmerica brand)
DraftKings Sportsbook (Crown MI Gaming)
FanDuel Sportsbook (Flutter Entertainment)
FOX Bet (The Stars Group)
GAN
Golden Nugget
Kambi (Sports Information Services/SIS)
Parx Interactive
Points
Bet
Scientific Games’ NYX Digital Gaming arm
William Hill American Wagering division
WYNNBet

Process of obtaining a license:

Richard S. Kalm, Executive Director of the MGCB, was quoted as saying...

Following the submission of the administrative regulations for online gaming and sports betting on December 2 to the Office of the Great Seal, the MGCB is now able to grant provisional licenses.

Before online gaming and sports betting may begin operations in the state of Michigan, the platform providers must first satisfy additional regulatory criteria. The release date will be determined by how soon they are able to complete all of the prerequisites.

Although Governor Gretchen Whitmer signed a measure into law in December 2019 to allow sports betting and online gambling, the process to obtain regulations approval and the requisite legislative backing has been difficult. And while the Michigan Gaming Control Board (MGCB) had hoped to launch online gaming before the end of 2020, with other states such as Indiana able to expedite their rulemaking processes, according to Legal Sports Report citing MGCB leadership, Governor Whitmer instructed that emergency rules not be used to expedite the process because the rules for online gambling did not meet the criteria for an emergency as set forth by the state. This was because other states such as Indiana were able to expedite their rulemaking processes.

Additional regulatory criteria must be satisfied by all platform providers before online gambling may begin in the state of Michigan. These criteria include the independent testing of platforms and games, as well as obtaining regulator clearance for their internal controls. This is done to guarantee that gaming is conducted honestly.

Kalm elaborated on...

"Which organizations can be licensed for launch initially will be determined by the platform providers' capacity to satisfy the criteria of the laws and rules,"

Midway through the month of May, the MGCB kicked off the process of granting licenses to online gambling suppliers. Even though the government has permitted platform providers and operators to launch applications ahead to launch, and even though residents of Michigan are able to establish accounts and download such apps, they are not able to make wagers until launch is authorized.

Insolvencies and financial losses:

In the meantime, the three commercial casinos in Detroit, Michigan, lost a combined total of millions of dollars as a result of an executive order that ordered them to close from March 16 to August 5 and then only permitted them to reopen at 15 percent capacity.

In response to an epidemic order that was issued by the Michigan Department of Health and Human Services (MDHHS) on November 15, 2020 and enforced by the Michigan Gaming Control Board (MGCB), the MGM Grand Detroit, MotorCity Casino, and Greektown Casino were all required to close for a period of three weeks beginning on November 18. This injunction was supposed to remain in effect until December 8; however, as the COVID-19 infection rate continues to climb in the state, an amended order will prohibit the operation of casinos and other entertainment venues until at least December 20.

Retail sportsbooks at Detroit's three casinos had their greatest October ever, raking in a combined total of $7.6 million in adjusted sports gambling income. This is in spite of the current coronavirus epidemic and the casinos only running at 15 percent capacity. According to the MGCB, this was a 72 percent rise over the $4.4 million that was received in September, which was the first full month that the sportsbooks were open for business.