Partnership with MotorCity Casino
FanDuel has secured access to the newly regulated sports betting market in Michigan by striking a partnership deal with MotorCity Casino in Detroit.
The sports giant will operate the retail sportsbook at the casino, as well as an online sportsbook and online casino. Online sportsbooks and casinos will not be able to launch until 2021 due to the rules and regulations for these operations still being created.
Online sportsbooks and casinos will not be able to launch until 2021
While sports betting has yet to launch in Michigan, there are reports that it will do so at some stage in March. The aim is to capitalize on the college basketball tournament known as “March Madness,” which is an extremely popular sporting tournament among bettors in the US.
Looking to dominate
FanDuel will be hoping to establish itself as a major force in the Michigan sports betting market. It has already carved out an impressive market share in New Jersey and Pennsylvania.
The company’s market share represents about 44% of the total markets in these two states. According to FanDuel CEO Matt King, a large reason for this success is due to its superior technology and competitive pricing.
Limited number of licenses
There is only a limited number of local partners for online operators. Now that FanDuel has signed this deal, there are no more casinos in Detroit that can be partnered with. The two other casinos located in the state have partnered with Roar Digital and Penn National.
Other operators that have penned deals to launch sportsbooks in Michigan include Fox Bet, PointsBet, and William Hill.
Plenty of opportunity in Michigan
A lot of operators are eyeing up the Michigan market with great interest.
The tax rates are friendly for operators and there will be significant gambling expansion when online gambling launches in 2021. There is also a population of about 10 million people, as well as being beside Canada where there are only very limited forms of sports betting.
After a few false starts, sports betting was legalized in Michigan near the end of the legislative session in 2019.
