Michigan One Step Closer to All Types of Online Betting

Michigan’s Need for Online Betting Grows as Casinos Close Again Online Betting

Michigan’s Need for Online Betting Grows as Casinos Close Again

By Blake Roberts Founder & Editor in Chief Updated: 28 November 2020

Blake Roberts Founder & Editor in Chief

Blake Roberts is the founder of Betting.US and is currently heading the creative team as Editor in Chief. Born and raised in Morgantown, West Virginia, Blake is a great sports fan, with football and basketball being his favorite. He’s our trusted voice for all betting-related matters.

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The recent sharp increase in COVID-19 cases across the United States has resulted in state governors having to take swift and drastic action. In some states, hospitality businesses including casinos have been forced to reduce capacity further in a bid to control the virus, while in others, businesses have been told to close altogether.

In Michigan, the state’s Department of Health & Human Services has now issued an order for the three state casinos to close their doors once again. The Greektown Casino Hotel, MotorCity Casino Hotel, and the MGM Grand, all of which are in Detroit, have been told to close for at least three weeks, after which further updates will be provided.

Impact on Sports Betting Activity

While the casino closures will inevitably have a huge negative impact on gambling activity, many have also highlighted the impact on sportsbook operators. Many believe that the situation could have been eased if online and mobile sports betting were available, but this has been delayed.

According to reports, regulators had been hoping for mobile sports betting to be available by November. This would have eased the financial impact of the casino closures across the state. However, despite hopes for a November launch, delays were caused by issues in regulatory processes.

This means that it could be at least December before online sports betting becomes a possibility, and some believe that it is more likely to be the early part of next year. One thing that is certain is that online sports betting is not in place at the moment to make up for the losses from the closure of brick-and-mortar casinos and their onsite sportsbooks.

One industry analyst said:

The sports betting boom across the US comes from the popularity of mobile wagering. We likely won’t see any states where retail sportsbook revenue comes anywhere close to what mobile wagering can produce.

With online sports betting having gained huge popularity, it can soften the blow for areas where casinos and brick-and-mortar sportsbooks keep getting closed down. However, for Michigan, the launch will come too late to make a difference during the latest closures.

Sportsbooks and Casinos Set to Lose Millions

According to figures, the casinos and onsite sportsbooks stand to lose millions as a result of the latest closures. Although there was a very low 15 percent capacity in place, casinos in Detroit made more than $101 million last month.

Taking this figure into consideration, the estimated losses for the casinos, if they are closed for a minimum of three weeks, could be a staggering $67 million. Around $5 million of this would be in relation to sports betting losses at retail sportsbooks. The sportsbooks at the casinos earned $7.6 million in October.

In states where online sports betting is already legalized, casino and retail sportsbook closures do not have such a huge impact. Most of the revenue for sportsbooks comes from online sports betting anyway, and this is not impacted by COVID-19 closures unless live sports events are also prevented from taking place.