Online Sports Betting Expected to Go Live in Michigan and Virginia
Legal online sports betting is about to become a reality for fans in Michigan and Virginia.
The Michigan Gaming Control Board expects to launch online sports wagering in the state this Friday, January 22nd, at 12pm EST, while online sports wagering in Virginia expects to go live by the end of January.
Only ten states currently offer full online sports betting in the United States. Michigan, and possibly Virginia, will join them as early as this week. Michigan will become the 11th state to offer full mobile sports betting, while Virginia has set the goal of launching before the Super Bowl, the anticipated most-wagered day of the year.
According to FanDuel Group chief marketing officer Mike Raffensperger, Michigan is an enticing market because they have one of the lowest tax levels on sports wagering in the country. Michigan's tax levels are comparable to New Jersey, which grossed over $301 million during their opening in 2018.
Michigan has an 8.4 percent tax on revenue for both in-person and online wagering, while New Jersey has an 8.5 percent tax for in-person wagers and a 13 percent tax for bets placed online.
“Michigan is extremely exciting from a marketplace perspective,” Raffensperger told MLive. “The legislation and the regulation, I think, was done really intelligently. It created a good mobile online sign-up, it has a sustainable tax rate, and it’s a good open competitive market.”
In November 2020, Tennessee shattered the record for the biggest sports betting launch, handling $131 million in wagers in their first month. Michigan bettors, who have legally wagered on sports in-person since March 2020, have an excellent chance to replicate the success when online sports betting goes live. FanDuel’s second-biggest sportsbook in the country is inside of Motor City Casino in Detroit.
Virginia has long awaited the approval of online sports wagering. The state approved sports betting in July 2020. Approximately 25 operators reportedly applied for sports betting licenses in the state. Up to 14 licenses will be awarded when it goes live this year.