Operator News
US – MotorCity, MGM Detroit and Greektown launch sports betting in Michigan
By Phil - 11 March 2020
Michigan bettors have had their first opportunity to place a legal sports bet with the opening of three Detroit-area sportsbooks, a momentous first step in the state’s fledgling industry. But with online sports betting and internet casino operations still a year away, the most significant leap forward is still months away, according to PlayMichigan analysts.
MotorCity said its sports book, which is the former Chromatics Lounge and Spectators bar locations, will be two stories, and include six betting windows and 54 self-service kiosks. MGM Grand Detroit has 18 kiosks, and Greektown 40.
“For two decades, we have been committed to reimagining the guest experience — consistently raising the bar with innovative entertainment,” said Bruce Dall, President of MotorCity. This relationship takes it to the next level.”
Matt King, CEO of the FanDuel Group, added: “Detroit is an incredible sports town. It has everything we look for — from the industry-leading casino operation to the proud and passionate Midwest fanbase. We couldn’t be more excited about the move to Detroit.”
Greektown’s sports book, The Sportsbook at Greektown Casino-Hotel, is located on the second level, near Trapper’s Bar whilst MGM Grand’s sports book, BETMGM, is located steps off the casino hotel entrance, outside its rebranded BETGMGM Sports Lounge.
“We’ve been talking about this kind of gaming legislation for over a decade,” said David Tsai, President and COO at MGM Grand Detroit. “A lot of work has gone into preparing for this big day.”
“Today is something that sports bettors across Michigan have been waiting for for years, which makes it a moment to celebrate,” said Dustin Gouker, chief analyst for PlayMichigan.com. “But much work remains, particularly with the launch of online sports betting still months away, if Michigan is to reach its potential as a market.”
The launch comes less than three months after HB 496 was signed into law and just in time for the tip of the NCAA Men’s Basketball Tournament, one of the largest sports betting holidays in the country.
Michigan, which was the 13th state to legalise online sports betting nationwide and just the fifth state to legalise online casino gambling, should eventually be one of the nation’s largest markets. Once mature, PlayMichigan expects the Wolverine State to generate $7bn to $8bn in sports bets each year and produce $500m in annual gross operator revenue.
But until online sports betting launches, which appears unlikely to happen until 2021, Michigan won’t come close to those targets. More than 85 per cent of all sports bets in New Jersey, the nation’s largest sports betting market, are made online. In neighbouring Indiana, 77.9 per cent of sports wagers were made online in February.
“With the NCAA Tournament just ahead, the timing of the launch is good, but it would have been better if both retail and online sports betting could have launched together,” Mr. Gouker said. “The high expectations for the market should remain relatively muted until online sportsbooks get off the ground. Once that happens, though, Michigan should ramp up rapidly.”
Michigan is well-positioned for its future once the state finalises regulations for online sportsbooks. With a rate for sports betting gross revenue at 8.4%, in addition to 1.25 per cent city tax for Detroit casinos, the tax structure is reasonable. And Michigan casinos have already struck smart partnerships with some of the biggest and best-known sports betting brands in the country, including FanDuel, PointsBet, and William Hill.
“Michigan has put together a balanced framework that is fair to operators and should yield significant tax revenue for the state,” Mr. Gouker said. “By being thoughtful in their approach, Michigan lawmakers avoided some of the growth-stunting policies that will likely slow down states such as Illinois.”
