Casino and sportsbook operators are eager to launch in Michigan. The competitive tax rates and the structure of the gambling laws in the state make it one of the most interesting gambling destinations in the US.

Good market for gambling products

Operators predict that Michigan will be a strong market once the Michigan Gaming Control Board gives its final approvals for the industry. It is expected that the approvals could arrive by next Monday, giving operators enough time to launch before March Madness. Michigan online sports betting could be enriched because of the state’s strong ties to sports.

What makes the market more lucrative for operators is the lowest taxation level on sports betting in the nation, which is barely 8.4% of the revenue. The same tax rate will be applicable to online sportsbooks as well. However, casino gaming will bear taxes between 20 to 28%, depending on the total revenue from online gaming. Other US states have imposed much higher taxes on operators. In states like Pennsylvania, the government demands a 36% tax.

A better rate than New Jersey

One of the most popular gaming markets in the US is New Jersey which has an 8.5% tax for operators. According to FanDuel chief marketing officer Mike Raffensperger, Michigan rates are comparable to that of the Garden State which makes it an exciting marketplace. He acknowledged that the taxation and the broader legislation was framed intelligently which includes mobile online signup, an open competitive market, and a sustainable tax rate. These three things have helped states like New Jersey sustain and it will also help Michigan.

Michigan, apart from its good gaming laws, also has a rich history in sports and sends robust teams for both pro and collegiate games. The state has allowed in-person sports betting at casinos with retail sportsbooks since March last year but the market remained largely untapped because of the COVID-19 restrictions.