The lucky stars are shining on Michigan online gambling as the state enters into a new world of legalized online gaming and sports betting. The new wave was fueled by the Super Bowl and March Madness, some of the mega-events that entice Michigan gamblers. The timing for the launch has been perfect. Waving the flag as the state launches this new era of MI casinos and sports betting was Gov. Gretchen Whitmer as he passed the legislation in December 2019.
After that, the Michigan Gaming Control Board (MGCB) took up planning how the rollout will take place, something that might have begun in 2021 or that it could have taken longer.
But life happened. The pandemic struck, leading to the closure of Michigan casinos, leaving the board members with enough time to focus and develop a better execution plan to ensure sports betting and online gambling are well executed. The outcome: When the “ON” switch was flipped on January 22, Michigan online casinos and sportsbooks surpassed launching efforts from all other statesmen.
According to Matt Schoch from PlayMichigan.com, the amount of money wagered in MI online gambling in February was over $300 million, the highest compared to any other state’s first whole month. New Jersey-based BetMGM’s spokeswoman, Elisa Richardson, lauded the Michigan gaming board for doing its best to authorize nine sportsbook operators to launch at the same time. She added that allowing multiple operators to go live simultaneously gave Michigan players options and influenced operators to also launch with compelling promotions to lure gamers.
From a long-term perspective, Richardson indicated that the best Michigan casinos, sportsbooks and poker rooms would compete effectively, like what has been seen in New Jersey, one of the largest states among the ten that BetMGM offers online gambling. Michigan Gaming Control Board’s executive director, Richard Kalm, is credited for the state’s rollout.
He was hired to take over as the executive director in 2007. Kalm was first hired by the former governor, Jennifer Granholm and Gov. Rich Snyder later reappointed him, and later by Whitmer. Those who have worked with him believe that he is the right guy for the job of managing and growing Michigan online gambling to become one of the leading in the US.
Mark Hackel, Macomb County Executive, said that what he admires most about Rich is his mysterious ability to see that information is processed effectively. He added that Rich has a brilliant way of breaking down complex issues and ensure that they are well understood. The best part is that he knows how well to manage others.
Kalm manages 140 employees throughout the state who work to regulate and monitor operations in the gaming industry. He looks to add more members to his team as online betting grows. The online world is the latest edition to Michigan’s evolving multi-billion gaming industry, including horse racing, casinos, and more.
There are a few questions posted to calm, and here are his responses regarding the issues related to the Michigan online gambling industry.
Question: Since 2007, you’ve been chairing MGCB. How does the experience compare with your job today?
Kalm: When I first started this journey into MI online gambling, the agency only regulated the three casinos and that it ensured it audited the 12 federally accepted tribes’ compliance with prescribed gaming agreements signed with Michigan. Over time, the agency’s responsibilities have diversified since 2007. One good example is the regulation of pari-mutuel horse racing, as its regulation was given to the board in 2010. During this time, I also took charge as the racing commissioner. Oversight of millionaire parties (charitable casino-style fundraisers) was also given to MGCB in 2012. Earlier on, this was done by Michigan Lottery. Following the changing regulations spurred by Gov. Whitmer to introduce Michigan casino online gaming and sports betting, other responsibilities were added to my dashboard.
Q: Compared to other states, Michigan online casinos and sportsbooks has had the best launch. What might have contributed to this big launch?
Kalm: Michigan online casinos and sportsbooks adopted a different launching strategy as it allowed multiple operators to kick off on the same day. This was a move that ensured MI online gaming and sports betting took off in the best way possible. In fact, the launch took place at the perfect time, with mega-events taking place such as March Madness and the Super Bowl. These two activities attract a huge following. In addition, some gamblers might also have taken advantage of MI online sports betting to place their bets right from their devices instead of going out to the cold in January and February.
Q. How has the pandemic affected gambling in Michigan?
Kalm: Michigan Casinos in Detroit had to be closed down during the first phase of the pandemic, from March 16 to August 4. They were also closed from November 18 to December 22. The three MI casinos in Detroit recorded about $639 million in average revenue in 2020 compared to the yearly revenue of $1.454 billion collected in 2019. Yearly revenue dropped 57.3% In 2020. The best Michigan casinos incurred $50.3 million in betting taxes to Michigan’s state. About $117.8 million was paid in 2019 for table games and slots revenue. Tax revenue from these casinos provides funds that support K-12 education. Local tax revenue also contributes a large percentage of what is used as Detroit’s budget.
Q. How do you think online gambling will help companies, casinos, and state coffers?
Kalm: MI Sports betting and online gaming are still new in the state of Michigan, and the market is still struggling to pick up. Legally, the Michigan sports betting and internet gaming operators are the three Detroit casinos and the 12 Native American tribes that operate Class III casinos. In total, this means that there are 15 Michigan gambling operators. Of course, this will be the total number when all operators are authorized to launch. The market will also bring in three more tribal operators that provide similar betting services.
Q. What do you see in the future for online sports betting in Michigan
Kalm: In the next coming months, the Michigan casino and sports betting market will be less even driven, making things a little bit different. What’s more, there will be more regular games to bet on other than those offered by the NCAA basketball league or college football. The state has a diverse range of sports activities, including basketball, hockey, and baseball. These should keep the interest in gambling going.
Q. What do you think about online games like poker?
Kalm: Well, Michigan poker has a huge fanbase. Reports from different publications indicate that PokerStars has a huge following. Just recently, BetMGM Michigan launched person-to-person poker. The changes in Michigan law also mean that MGCB will negotiate a multistate agreement. It means that players in Michigan online poker rooms will actively compete with players from outside states. Other gaming agreements are still yet to be introduced into the market.
Q. Do you have any concerns regarding the booming online gaming?
Kalm: There is the possibility of addiction issues as there will be much easier access to Michigan gambling through digital devices. However, MGCB has offered options for gamblers to limit their stakes or risk putting themselves on a list where they would not be able to gamble for one or five years. While these regulations might help, there are millions of visits to different gambling sites each year.
