Michigan is the latest US state to launch the online casino market, following in the footsteps of New Jersey, West Virginia and Pennsylvania just a few years back. The debut of iGaming in Michigan saw a number of major software providers entering the market from day one, including NetEnt and High5Games.
Beginning of a New Era
According to the Michigan Gaming Control Board, nine operators were authorised to launch online sports betting and iGaming, ushering in a new era in regulated online gaming.
“Michigan now can offer legal, regulated online gaming and sports betting to residents and visitors,” said Executive Director of MGCB Richard Kalm. “It’s an exciting and much-anticipated day and will bring revenue to support education, tribal communities and the city of Detroit,” he added.
An exciting and much-anticipated day will bring revenue to the city of Detroit across the board, MGCB’s Executive Director Richard Kalm noted.
Online gaming and sports betting will give casinos new ways to engage with their customers, while taxes derived from wagering revenue will benefit the state and local communities.
Major Revenue Drive
According to projections from an independent news and analysis aggregator, MichiganSharp.com, online casinos in the state could generate revenue of up to $250 million in the first year of operations, which translates into $60 million in taxes.
The figure, however, is much higher when sports betting is taken into account. According to the source, sports betting may bring in $400 million in revenue in 2021, or roughly $33.6 million in taxes for the state.
In total, the Great Lake State could benefit from $93.6 million in tax revenue, brought in by $650 million in revenue for casinos in the first year of operations.
Michigan could derive $93.6 million in yearly tax revenue from the online casino market, according to projections.
Naturally, as the number of providers and operators enters the Michigan market, the numbers will only go up.
NetEnt Debuts in Michigan With Several Operators
One of the providers to enter the Michigan online casino market from day one is a premium casino content developer, NetEnt. By making a debut in the state, the game development studio is on the path to expanding its already large footprint in the US.
Commenting on the launch, Jeff Millar, Evolution Group’s Commercial Director for North America said that “Friday’s successful launch with multiple operators is the result of months of planning for Michigan’s go-live and years of on-the-ground experience in the US.”
The fact that the US is an absolute priority market for NetEnt’s parent company Evolution Group is reflected by the scale of the studio’s first-day presence in Michigan. Some of the casinos to offer NetEnt’s titles in Michigan are BetMGM, Churchill Downs, DraftKings, Golden Nugget and William Hill.
The successful launch is the result of months of planning for Michigan’s go-live and years of experience in the US, said Evolution’s Jeff Millar.
According to him, the US is “an absolute priority market for Evolution Group.” Later in 2021, Evolution intends to open a state-of-the-art Live Casino broadcast studio in Michigan, the third in the US and eleventh globally.
“We are poised to add more operators in all US markets during 2021 and have a roadmap of high-profile game launches,” Millar noted.