Expectations are high in the first year of online gaming and sports betting in Michigan as analysts are projecting that the state could bring in a whopping $93.6 million worth of tax revenue in the first year alone.
If those estimations come true, Michigan will certainly come away as a big winner and greatly benefit from sports betting during a difficult economical time throughout the state and the country.
The First Casino Platforms Poised to Go Live
It looks like those anxious to start placing online bets in Michigan may see it happen before the end of 2020 as reports suggest that the casino platforms and online sports betting are poised to go live by the end of the year.
This comes as great news not only for those betting enthusiasts, but also the state which is set to enjoy a rather hefty tax revenue generated by the recreational activity.
The online casinos, poker, and sports betting industry is projected to earn $650 million during its first full year of operations. Each gaming will be taxed at 8.4% and the three commercial casinos in Detroit will also pay an extra 1.25% city tax.
Industry insiders believe that Michigan could become a major hub for online gambling and sports betting in the nation. This is largely due to an appealing tax rate, which is less than many other states that already have legalized sports betting.
Pennsylvania has an astronomical tax rate of 36%, Indiana’s online sports betting tax is set at 9.5%, and New Jersey’s online sportsbooks are taxed at 13% while their land-based sportsbooks are at 9.75%. From the casino and sportsbook’s perspective, Michigan looks quite attractive to set up shop.
Plenty of Options to Choose From
As it stands right now, there are 26 brick-and-mortar casinos located in the state with 23 of those being tribal properties. Each one of these casinos can go ahead and apply for an internet gaming license and a sports betting license. The licenses will be granted through the Michigan Gaming Control Board.
Meanwhile, online poker and casino revenue will be taxed at a higher rate coming in at 20-28%. The exact rate will be determined using a tier system that is grounded in the earnings.
One thing is for sure, with tax revenues projected to be close to $100 million in the first year, the state seems to be moving full steam ahead on getting the industry up and running.
As a longtime freelance writer, avid sports fan, former athlete, and experienced sports bettor, Rick Rockwell has risen up the ranks at GamblingSites.org to become the self-professed “King of the Blog” in his first year with the site. …