Michigan Sports Betting Rises, Daily Fantasy Sports Suffer

Sports betting in Michigan has been flourishing since online gambling launched in January 2021. However, Michigan daily fantasy sports apps were recently delivered a blow due to new legislation that took effect in the state.

Some daily fantasy sports companies have taken advantage of legal gray areas to offer player prop bets on their apps. Lawmakers in Michigan, and other states like New York, were taking note.

Let’s take a deep dive into the latest Michigan sports betting numbers and how the newly-enacted Fantasy Sports Contests Consumer Protection Act potentially impacts your experience.

Michigan Online Gambling Revenue Rises

Michigan is reaping the benefits of legalizing online sports betting. Two years after sports betting was legalized in Michigan, bettors were able to place their first wagers in early 2021. The overall trend for iGaming in Michigan has been positive.

From 2021 to 2022, Michigan’s online gambling revenue rose exponentially. According to the Michigan Gaming Control Board, Michigan raked in roughly $2 billion in revenue in 2022.

Online casino games were responsible for $1.58 billion, while sports betting generated $400 million in gross revenue. It represents an impressive 41 percent increase from the first year of online gambling in 2021.

The total amount wagered by bettors increased from $3.7 billion in 2021 to $4.6 billion in 2022¹. Despite not having the complete numbers for 2023, Michigan’s online gambling revenue continues to trend up.

The State of Michigan reported that there was a 13.2 percent increase in revenue year-on-year from August 2022 to August 2023. In 2022, Michigan reported $154.9 million in revenue. This past August, $175.4 million was wagered on sports and online casino games in August 2023².

The year-on-year bump in betting from July 2022 to July 2023 was even larger. With an 18.8 percent revenue increase, the State of Michigan reported $176.1 million in revenue from online gamblers in July. Additionally, the total amount wagered skyrocketed by 17.8 percent from the previous year³.

If the current trends continue through the end of the year, Michigan will be set to break a new record for online gambling in 2023. Only legal online gambling operators that hold a license issued by the Michigan Gaming Control Board will be included in the figures.

Michigan Daily Fantasy Sports Operators Under Attack

The Fantasy Sports Contests Consumer Protection Act was introduced in the Michigan Legislature to make it illegal for daily fantasy sports to have any sports betting-related content, notably offering individual player props for wagering.

On October 11, 2023, the State of Michigan’s new legislation came into effect. The Fantasy Sports Contests Consumer Protection Act states⁴:

“Under the Fantasy Contests Consumer Protection Act Rules, a fantasy contest operator or licensed management company may only offer or conduct a fantasy contest that is based on an athletic event — defined under MCL 432.502(a) as a real-world professional, collegiate or nationally recognized sports game, contest, or competition involving skills of the participating individual athletes and upon which the outcome of the game is directly dependent on the athletes’ performance.”

Additionally, Michigan daily fantasy sports agencies must apply for a fantasy contest license. This is described as an operator license to conduct or offer fantasy contests for play, and a management company licensee handles the day-to-day fantasy contest operations for an operator.

Previously, before the ruling, despite not having a license to offer online gambling, daily fantasy sports companies were allowing their users to wager on player props.

In other words, Michigan daily fantasy sports apps, such as Sleeper, were accepting player production-based prop betting parlay bets. Other operators that are the subject of the crackdown include PrizePicks, Betr, and Underdog Sports.

Florida Sets An Example That Michigan Might Follow

In September, Florida regulators sent cease-and-desist letters to PrizePicks, Betr, and Underdog Sports. In the letter, regulators targeted the companies’ “Pick’em” games, in which players could bet on Over-Under style player prop bets.

According to EGR, the Florida Gaming Control Commission’s (FGCC) executive director, Louis Trombetta, stated in his letter that failing to stop offering these prop-style gambling games could result in prosecution⁵ :

“Your failure to comply will result in the Florida Gaming Control Commission taking any and all appropriate action, including referring this matter to the Attorney General’s Office of Statewide Prosecution.”

In Michigan, daily fantasy sports operators can expect a similar letter from the State of Michigan regulators if they do not comply with the Fantasy Sports Contests Consumer Protection Act.

What Does This Mean For Michigan Daily Fantasy Sports Players?

In short, daily sports players will not be able to continue to play prop-style bets with operators that do not have a Michigan sports betting online license. Note that there are no restrictions on DraftKings and FanDuel, who also specialize in daily fantasy sports, to offer sports betting odds and prop bets on their apps.

DraftKings and FanDuel’s daily fantasy sports are legal in the State of Michigan. Also, they have their separate online sports betting products, which include player prop bets. If other daily fantasy operators want to do the same, they must apply for an online gambling license with the State of Michigan.

Currently, the application fee for online gambling in Michigan is $50,000 and the initial license fee is $100,000 for five years⁶. The process is exhaustive and can be difficult to be accepted by the Michigan Gaming Control Board. As a result, expect to see daily fantasy sports operators continue to try and bend the rules.

If you are a member of a Michigan daily fantasy sports app and want to continue betting on prop wagers, you will be required to play at the best online casinos. Find our top choice for Michigan gamblers below.

Where Should Michigan Residents Gamble Online For Prop Bets?

With Michigan legalizing online gambling in 2019, gamblers have multiple options for betting on sports and casino games. For the best all-encompassing experience that includes sports and an online casino, we recommend checking out Bovada.

Located all in one spot online, Bovada has a world-class online sportsbook and safe online casino. Since 1994, the Bovada brand has been providing the very best in online gaming.

What separates Bovada from the rest of the pack is their vast options for player and game prop bets. Furthermore, this industry leader offers its bettors the opportunity to build their own player prop bets.

Bovada’s prop builder is an innovative tool that provides Michigan sports bettors a unique opportunity to wager on all major sports through the creation of their own prop bets. It’s an ingenious sports betting creation that experienced bettors can find fantastic value with.

All new users who deposit with crypto will instantly receive a $750 sports betting bonus. Credit card deposits are eligible for a $250 sportsbook bonus at Bovada.

Casino players can take advantage of a whopping $3,750 free crypto bonus! With a credit card, the offer is still impressive, with up to $3,000 in free bonus credits to use in Bovada’s state-of-the-art online casino.