During his time overseeing sports betting operations on the Las Vegas Strip, DraftKings Director of Race and Sportsbook Johnny Avello was often a guest on sports talk radio in Michigan.
At the time, Nevada was the only full-scale sports betting market in the U.S., but Avello quickly learned that Michigan fans knew and loved their sports.
“I think we’re going to do pretty well in the state,” Avello said Tuesday after Michigan gaming regulators approved nine casinos and their sports wagering partners to launch online sports betting and Internet casino games on Friday.
Johnny Avello provides a tour of the new DraftKings offices in Las Vegas
“Different states have different behaviors on how they bet,” said Avello, who is overseeing DraftKings sports betting operations in 12 states. “Michigan is a state with a good sports background.”
Michigan launched retail sportsbooks last year, but the gaming industry had its eye on the mobile sports betting world.
Boston-based DraftKings has operated a retail sportsbook at Bay Mills Resort & Casino in the Upper Peninsula on the shores of Lake Superior for the Bay Mills Indian Community. Now, through its DraftKings mobile sports betting app, the company can draw customers from the state’s populous metro markets, including Detroit, more than 340 miles to the south.
The three Detroit casinos – Greektown, MGM Grand, and Motor City – will jump into the game with six tribal casinos, all of which are bringing along nine sports betting operators – William Hill U.S., Penn/Barstool, TwinSpires, Golden Nugget, Rush Street, BetMGM, FanDuel, WynnBets, and DraftKings.
“It’s going to be a competitive market, but we don’t run away from competition,” Avello said.
Michigan is collecting an 8.4% tax on sports betting and a 20% to 28% tax on online gambling. Detroit’s casinos may have to pay an additional municipal services fee.
According to PlayMichigan.com, Michigan’s three commercial casino retail sportsbooks in Detroit have accepted $130.7 million in sports wagers since launching last March with revenues of almost $18.3 million. COVID-19 closures last year of casinos and cancellations of college and professional sports slowed the rollout.
Online sports betting is expected to expand the market.
“Retail has its place,” Avello said. “People like to be around other players and the noise and the conversation. But online is the future.”
Penn National CEO Jay Snowden said the company is looking for similar success in Michigan that it found when the Barstool sports betting app launched in Pennsylvania.
“Our customers have thoroughly enjoyed engaging with Dave Portnoy, Dan ‘Big Cat’ Katz, and other Barstool fan favorites, and we expect more of the same in Michigan,” Snowden said. Penn opened a Barstool branded sportsbook at Greektown in December.
Rush Street Interactive President Richard Schwartz said online casino and sports betting allows the company to continue its partnership with the Little River Casino in Manistee, which owned by the Little River Band of Ottawa Indians.
“We are excited to continue the successful expansion of our online casino and sportsbook and bring greater ease and convenience to Michiganders with the debut of BetRivers.com,” Schwartz said.
Several of the Michigan sports betting operators are planning promotions around the launch.
DraftKings is offering “double your money” opportunities if the Detroit Pistons score a three-point shot in their game Friday night and on NFL teams scoring conference championship touchdowns on Sunday.
Penn National said it will match first-time deposits to the Barstool app in Michigan with donations to the Barstool Fund, which was set up by Portnoy in December to help small businesses around the country that have been hard hit by the pandemic. The money donated by Penn this weekend will be directed toward Michigan small businesses.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
