Michigan Online Sports Betting Begins Friday: What To Know

Beginning at noon Friday, online sports gaming and betting begins in Michigan — just in time for the NFC and AFC Championship games in the NFL this weekend.

The Michigan Gaming Control Board on Tuesday authorized nine operators to begin online sports betting or both online gaming and sports betting beginning Friday.

MGCB Executive Director Richard Kalm said it's a "new era" for the state's commercial and tribal casinos.

“Michigan residents love sports and, judging by inquiries we’ve received, eagerly anticipate using mobile devices to place bets through the commercial and tribal casinos," Kalm said in a statement. "Online gaming and sports betting will provide the casinos with new ways to engage with customers while the state and local communities will benefit from taxes and payments on wagering revenue."

Since it's a first for Michigan, there is a lot to learn about the online sports betting and gaming world. Here is a breakdown of what to know:

Nine Operators Begin Online Offerings

Nine tribal and commercial casinos will begin offering online betting and gaming at noon Friday. They are:

Taxes and Payment Rates

The tax and payment rate for online sports betting in Michigan is 8.4 percent, according to the MGCB. The tax and payment rate for internet gaming ranges from about 20 percent to 28 percent.

The Detroit casinos also may be required to pay a municipal services fee and a development agreement payment to the city of Detroit, according to the MGCB.

Tax Allocations

For the Detroit casinos, 30 percent of online sports betting and internet gaming taxes are allocated to the city; 5 percent goes to the Michigan Agriculture Equine Industry Development Fund; and 65 percent of taxes are allocated to the state Internet Sports Betting Fund or the state Internet Gaming Fund.

For internet gaming, a hold-harmless provision seeks to help the city recoup lost gaming tax revenue if the city of Detroit collects less than $183 million in a fiscal year, according to the MGCB.

With tribal casinos, 90 percent of payments by tribes through online sports betting are allocated to the Internet Sports Betting Fund, while 10 percent goes to the Michigan Strategic Fund.

With internet gambling, 20 percent of payments by tribes are allocated to local jurisdiction governing body for services, while 70 percent goes toward the state Internet Gaming Fund and 10 percent to the Michigan Strategic Fund.

Possible Scams and Catches

As with anything new, there also presides the potential for scams. Michigan Attorney General Dana Nessel said online betting and gambling is no exception. She also encouraged Michiganders interested in partaking in the new online gambling and betting options to first read the fine print associated with them.

“Authorization of these programs is very recent, and I urge anyone who is interested in registering to carefully read and understand the terms and conditions related to the promotional packages being offered so that you are not confused about what might be expected,” Nessel said. “In some instances, site users may be required to spend or deposit a certain amount of money into an account before receiving their free play credits, and users should make themselves aware of such conditions so they are not taken off guard.”