MI Gamblers Place $10 Million In Wagers Since Sports Betting Legalized

MICHIGAN — How much would you bet Michiganders have wagered in the five years since the U.S. Supreme Court cleared the way for legal sports betting in all 50 states?

The total is $10.1 million through the end of March, according to American Gaming Association data provided to The Associated Press as the fifth anniversary of the decision rolls around Sunday.

Nationally, about $220 billion in sports wagers have been placed during the period, up from $125 billion that had been wagered by the four-year mark, according to the gaming industry trade group’s data.

Michigan is among 37 and the District of Columbia that have legalized sports gambling since the Supreme Court’s May 14, 2018, decision on a New Jersey case that was the longest of long shots: a bid to overturn a federal law, the Professional and Amateur Sports Protection Act, that restricted sports betting to just four states that met a 1991 deadline to legalize it.

More states are expected to legalize sports betting in the months and years to come.

“While the milestones of legalized sports betting that have led up to now are remarkable, this industry is excitingly still far from being fully realized,” Jason Robins, CEO of DraftKings, one of the industry's two dominant companies, told the AP.

“Legal betting is already part of mainstream sports culture, and I anticipate this trend will grow as adoption increases,” Robins said. “The accessibility right now for fans to place a live, micro-bet during a game, for example, shares parallels with other smartphone-powered capabilities like hailing a ride, buying a stock, or playing a podcast.”

States have a strong incentive to legalize sports gambling. Sports betting taxes on operators have generated about $3.6 billion in revenue: $3 billion for state and local governments, and $570 million for the federal government.

Michigan has taken in $14,610,113 in the three years that sports betting has been allowed, according to an analysis of data from the National Conference of State Legislatures.

States take different approaches to the tax structure. Some have high tax rates between 36 percent and 51 percent, but most are between 10 percent and 15 percent. Michigan is 8.4 percent and they put the money toward local government programs and school aid funds.

Those treating compulsive gambling say calls to their hotlines seeking help have increased by about 15 percent in the five years since sports betting was legalized and made available on cell phones.

Of particular note, according to a separate report from Stateline, a publication of States Newsroom, a national nonprofit news outlet, calls to gambling hotlines by men ages 18-25 are up.

Since legalizing sports gambling, calls to the gambling hotline in Michigan — that’s 1-800-270-7117 — have spiked over the past three years, according to data from the Michigan Department of Health and Human Services.

During fiscal year 2022, the helpline received 4,306 gambling-related calls, an 18 percent increase from the fiscal year 2021, and up 171 percent from the fiscal year 2020, before mobile wagering was an option, according to the state data.

Other problems have occurred as well, including the suspension of several NFL players for betting on games. Also, some colleges struck partnerships with sports leagues and illegally marketed sports betting to students under the legal age of 21, prompting leagues and gambling companies to revise their policies.

And last week, regulators in Ohio, Pennsylvania and New Jersey ordered their sports books to stop taking bets on the University of Alabama baseball team after suspicious activity was identified in an Alabama-Louisiana State University game on April 28.

Alabama baseball coach Brad Bohannon was fired amid an investigation that began when one of the numerous companies monitoring sports betting data and other activities found what it considered suspicious activity and tipped off gambling regulators. No criminal charges have been filed.

Sports books, which generally keep about 10 percent of all the money they handle after paying out winning bets, are finally seeing profitability. In some states with casinos and race tracks, legalized sports gambling provides an auxiliary revenue source.

“Sports betting has saved the day,” Jeff Gural, who operates Meadowlands Racetrack in northern New Jersey, just across the Hudson River from New York City, told the AP.

The track offers a FanDuel sportsbook, which combined with FanDuel's online operation takes in nearly 50 cents of every dollar wagered on sports in New Jersey.

“I don't think the Meadowlands would be open as a racetrack now without sports betting,” he said.

With reporting by The Associated Press