Michigan Sports Betting

Is Sports Betting Legal in Michigan?

Yes, sports betting has been live in Michigan since early 2020.

The push for legal sports betting in MI began on May 14, 2018, when the US Supreme Court struck down a 1992 federal law that effectively banned sports betting in the United States. Although the Legislature passed a bill to legalize and regulate online gambling in late 2018, then-Gov. Rick Snyder vetoed the bill.

Gov. Gretchen Whitmer became the state’s 49th governor on January 1, 2019. In December 2019, the lifelong Michigander added her signature to a package of bills that would legalize sports betting and online gaming through the state’s casinos.

Approval of the Michigan Lawful Sports Betting Act led to sports betting launching in March 2020, with the first bets being placed at the MGM Grand, MotorCity Casino and Greektown Casino. However, these casinos were forced to close their doors a few days later because of the COVID-19 pandemic.

Lawmakers then turned their attention to launching online sports betting in Michigan. Although late November 2020 was the original goal, the state officially launched online sports betting on January 22, 2021, after all the necessary regulations were set in stone.

Michigan Sports Betting Rules and Regulations

The Michigan Gaming Control Board (MGBC) is responsible for regulating the three Detroit casinos (MGM Grand Detroit, MotorCity Casino Hotel and Greektown Casino) and their respective sports betting partners. The MGBC is also responsible for regulating licensed online sports betting operators.

Tribal casinos and their retail sportsbooks are regulated by the individual tribe and the National Indian Gaming Association.

Now you know who is responsible for regulation, it’s time to highlight the main sports betting rules in MI:

• You must be 21 or older and inside state lines to bet on sports online. Michigan sports betting apps use geolocation technology to make sure that’s the case.
• You must enter the last four digits of your social security number to verify your age and identity when you sign up for an account with licensed sportsbooks in Michigan.
• You cannot bet with licensed betting sites in Michigan if you’re on any gambling self-exclusion lists. Sportsbooks cannot market themselves to anyone on a self-exclusion list, either.
• If you work for a gambling company that offers sports betting, a sports team or certain vendors, or own a certain amount of equity in either a sportsbook or a team, you may be ineligible to bet on certain events.

Michigan Sports Betting Tax

Sports betting winnings in Michigan are subject to various taxations by the Federal Government and Michigan State. It’s important to note that the wager you win back doesn’t count toward your overall winnings. Therefore, if you bet $10 to win $20, your taxable winnings are $10.

Income tax is set at 24% on all types of bet winnings, and the state imposes a 4.25% tax on your winnings. Under federal law, winnings of 300x the bet or more must be reported, and the payor is obliged to provide a W-2G form to anyone who wins $600 or more.

Horse Racing Betting in Michigan

Michigan lawmakers approved pari-mutuel betting on horse races in 1933. Nearly a dozen thoroughbred and harness tracks have come and gone since that time, including Detroit Race Course and Hazel Park, so what horse racing betting options are left for Michiganders and state visitors?

Is Online Horse Betting Legal in Michigan?

Yes! State lawmakers authorized online horse betting with the passage of House Bill 4310, which was signed by Gov. Gretchen Whitmer on December 20, 2019. Passage of HB 4310 officially allowed any third-party online racing betting operators to apply for licenses to accept online and mobile wagers.

Online horse betting began in Michigan in July 2020. TVG was the first national advance deposit wagering (ADW) platform to begin operating in the state. Several other major operators quickly followed, including the likes of TwinSpires and AmWager, and more are expected to join the market.

Whilst win, place, and show wagers are popular options at horse racing betting sites in MI, it’s estimated that over 70% of all horse racing wagers are exotic bets such as a Quinella, Exacta, or Trifecta.

Off Track Betting (OTB) in Michigan

Unfortunately, there is only one racetrack left standing in Michigan: Northville Downs, located about 30 miles west of Detroit. Built in 1944, Northville Downs hosts live harness racing in the winter and spring on a half-mile track, and it’s open seven days a week for simulcast racing around the country.

You can bet on hundreds of simulcast races from across the United States, including prestigious races such as the Breeders’ Cup, Belmont Stakes, and Kentucky Derby. Off track betting locations in Michigan may be scarce, but the state’s only surviving horse racing track attracts bettors from all corners of MI.

Fantasy Sports Betting in Michigan

Although Michiganders were already able to participate in fantasy contest on DFS sites such as FanDuel and DraftKings, the legalization of online sports betting in 2019 ensured locals could do so in an a regulated environment.

The Michigan Gaming Control Board regulates daily fantasy sports in Michigan. DFS sites must pay $20,000 for their license and a $5,000 annual fee. These sites are also taxed at 8.4%. Low taxes and relatively low licensing costs have been put in place to encourage smaller fantasy sports companies to enter the market and join industry giants such as DraftKings and FanDuel.