The experts have projected that Michigan online gambling and sports betting could draw a whopping $93 million in tax revenue in its first year.
If these high hopes turn into reality, Michigan will undoubtedly emerge as a winner amid the difficult times due to the Covid-19. But another great aspect of it would be that it would definitely make other states realize the benefits of a market they have so far chosen to ignore.
The First Casino Platforms Ready to Go Live
It appears that those excited about placing online bets in Michigan, perhaps on their beloved Detroit Tigers, could see it happen before the end of this year. According to reports, the casino platforms and online sports betting are set to go live by the end of 2020.
This is an exciting update not only for those betting lovers but also for the state is poised to reap a considerable tax revenue generated by the recreational activity.
The online gambling industry is estimated to earn $650 during its first year of operations. Each gaming will be charged at 8.4%. Plus, the three commercial casinos in Detroit will have to pay an extra 1.25% city tax.
According to insiders, Michigan could become an epicenter for online gambling and sports betting in the country. This is mainly due to an enticing tax rate, which is less than most of the other states that have already legalized the betting industry.
For instance, Pennsylvania has an enormous tax rate of 36%, while Indiana’s online sports betting tax is levied at 9.5%. Plus, New Jersey’s online sportsbooks are charged at 13% while their brick-and-mortar sportsbooks venues are at 9.75%.
When compared to these states’ betting industry, Michigan’s market is quite enticing for the online betting market.
Lots of Options to Select From
Currently, there are 26 land-based casinos located in Michigan, including 23 tribal properties. All of these casinos are eligible to go ahead and apply for online gambling and sports betting licenses. Michigan Gaming Control is authorized to grant these licenses.
Meanwhile, online casino and poker revenue will be charged at a higher rate coming at 20-28%. However, the exact rate will be assessed using a tier system that is based on the earnings.
Yet, one thing seems clear, with tax revenues estimated to be touching $100 million in the first year, Michigan seems to be changing its policy gear towards the industry.