Daily Fantasy Sports Offerings In Michigan
The answer to the question of daily fantasy sports’ (DFS) legality in the state of Michigan was settled in 2019. The regulation and taxation of fantasy contests were included in expanded gambling bills that were signed into law by Gov. Gretchen Whitmer on Dec. 20, 2019.
The Michigan Gaming Control Board granted temporary licenses to DFS companies and they started paying taxes in January 2020.
Daily fantasy sports regulation in Michigan
Daily fantasy sports operators pay an 8.4% tax on adjusted revenues to the state of Michigan.
It’s the same tax rate paid by sports betting operators for retail sportsbooks in Detroit and also when online sports betting launches statewide.
Keep tabs about the launch for online sports betting here with our live updates.
Revenue raised by daily fantasy sports in Michigan
In 2020, the first year of regulated daily fantasy sports in Michigan, more than $14.7 million of adjusted revenue was generated through November. Of that, more than $1.2 million was new tax money for the state.
(Page updated: January 12, 2021)
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $14,726,535.78 | $1,237,029.00 |
| DraftKings | $8,367,385.74 | $702,860.40 |
| FanDuel | $5,547,724.52 | $466,008.87 |
| Fantasy Football Players Championship | $381,447.43 | $32,041.59 |
| Fantasy Sports Shark | $273,263.53 | $22,954.14 |
| Yahoo Fantasy Sports | $102,117.27 | $8,577.84 |
| SportsHub Games Network | $32,719.41 | $2,748.43 |
| FullTime Fantasy Sports Network | $21,064.57 | $1,769.41 |
| Boom Shakalaka Inc. | $813.31 | $68.32 |
Michigan’s biggest daily fantasy sports sites
In the US, FanDuel and DraftKings comprise more than 90 percent of the DFS market. Not surprisingly, these two companies are also the two most-popular DFS operators in Michigan.
The two companies entered into a merger agreement in November 2016. However, it fell apart in the wake of federal anti-trust investigations regarding whether or not it constitutes a monopoly.
The active fantasy contests that are now taxed by the state include:
- Boom Shakalaka Inc.
- DraftKings
- FanDuel
- Fantasy Football Players Championship
- Fantasy Sports Shark
- FullTime Fantasy Sports Network
- SportsHub Games Network
- Yahoo Fantasy Sports
Historic MI DFS revenue per month
Here is a look at how each month has gone for Michigan daily fantasy sports:
November 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $2,244,563.43 | $188,543.33 |
| DraftKings | $1,355,360.99 | $113,850.32 |
| FanDuel | $871,585.06 | $73,213.15 |
| Yahoo Fantasy Sports | $13,746.33 | $1,154.69 |
| SportsHub Games Network | $2,176.77 | $182.85 |
| Fantasy Football Players Championship | $1,535.83 | $129.01 |
| Fantasy Sports Shark | $0.00 | $0.00 |
| FullTime Fantasy Sports Network | $158.45 | $13.31 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
October 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $2,181,382.95 | $183,236.18 |
| DraftKings | $1,331,868.77 | $135,339.48 |
| FanDuel | $825,502.82 | $69,342.24 |
| Yahoo Fantasy Sports | $18,187.49 | $1,527.75 |
| SportsHub Games Network | $4,364.75 | $366.64 |
| Fantasy Football Players Championship | $1,459.12 | $122.57 |
| Fantasy Sports Shark | $88,230.93 | $7,411.40 |
| FullTime Fantasy Sports Network | $0.00 | $0.00 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
September 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $3,017,249.69 | $253,448.97 |
| DraftKings | $1,611,184.32 | $135,339.48 |
| FanDuel | $1,193,191.18 | $100,228.06 |
| Fantasy Football Players Championship | $95,367.78 | $8,010.89 |
| Fantasy Sports Shark | $81,947.71 | $6,883.61 |
| SportsHub Games Network | $16,092.86 | $1,351.80 |
| Yahoo Fantasy Sports | $12,972.36 | $1,089.68 |
| FullTime Fantasy Sports Network | $6,493.48 | $545.45 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
August 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $2,260,421.99 | $189,875.45 |
| DraftKings | $1,148,952.33 | $96,512.00 |
| FanDuel | $952,246.06 | $79,988.67 |
| Fantasy Football Players Championship | $148,395.07 | $12,465.19 |
| Yahoo Fantasy Sports | $7,203.15 | $605.06 |
| FullTime Fantasy Sports Network | $3,624.02 | $304.42 |
| SportsHub Games Network | $1.36 | $0.11 |
| Fantasy Sports Shark | $0.00 | $0.00 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
July 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $881,204.13 | $74,021.15 |
| DraftKings | $619,208.97 | $52,013.55 |
| FanDuel | $220,894.26 | $18,555.12 |
| Fantasy Football Players Championship | $37,973.29 | $3,189.76 |
| Yahoo Fantasy Sports | $2,577.70 | $216.53 |
| FullTime Fantasy Sports Network | $358.63 | $30.12 |
| SportsHub Games Network | $191.28 | $16.07 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
| Fantasy Sports Shark | $0.00 | $0.00 |
June 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $488,049.80 | $40,996.17 |
| DraftKings | $382,621.93 | $32,140.24 |
| FanDuel | $78,069.30 | $6,557.82 |
| Fantasy Football Players Championship | $24,436.00 | $2,052.62 |
| SportsHub Games Network | $2,354.30 | $197.76 |
| FullTime Fantasy Sports Network | $426.43 | $35.82 |
| Yahoo Fantasy Sports | $141.84 | $11.91 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
| Fantasy Sports Shark | $0.00 | $0.00 |
May 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $329,173.37 | $27,650.57 |
| DraftKings | $236,525.06 | $19,868.10 |
| FanDuel | $62,673.23 | $5,264.55 |
| Fantasy Football Players Championship | $21,115.92 | $1,773.74 |
| Fantasy Sports Shark | $6,244.12 | $524.51 |
| FullTime Fantasy Sports Network | $2,160.32 | $181.47 |
| SportsHub Games Network | $454.72 | $38.20 |
| Yahoo Fantasy Sports | $0.00 | $0.00 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
April 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $185,504.76 | $15,582.39 |
| DraftKings | $145,057.86 | $12,184.86 |
| FanDuel | $23,596.70 | $1,982.12 |
| Fantasy Football Players Championship | $12,269.99 | $1,030.68 |
| FullTime Fantasy Sports Network | $3,364.44 | $282.61 |
| Fantasy Sports Shark | $1,215.77 | $102.12 |
| Yahoo Fantasy Sports | $0.00 | $0.00 |
| Boom Shakalaka Inc. | $0.00 | $0.00 |
| SportsHub Games Network | $0.00 | $0.00 |
March 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $465,881.25 | $39,134.03 |
| DraftKings | $248,911.98 | $20,908.61 |
| FanDuel | $182,707.33 | $15,347.42 |
| Fantasy Football Players Championship | $15,346.57 | $1,289.11 |
| Fantasy Sports Shark | $14,190.95 | $1,192.04 |
| Yahoo Fantasy Sports | $3,226.99 | $272.07 |
| FullTime Fantasy Sports Network | $1,346.95 | $113.14 |
| Boom Shakalaka Inc. | $149.89 | $12.59 |
| SportsHub Games Network | $0.59 | $0.05 |
February 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $961,886.73 | $80,798.48 |
| DraftKings | $530,879.63 | $44,593.89 |
| FanDuel | $428,714.65 | $36,012.03 |
| Fantasy Sports Shark | $36,938.89 | $3,102.87 |
| Yahoo Fantasy Sports | $6,988.27 | $587.01 |
| SportsHub Games Network | $3,570.97 | $299.96 |
| Boom Shakalaka Inc. | $449.36 | $37.75 |
| FullTime Fantasy Sports Network | -$1,686.04 | -$141.63 |
| Fantasy Football Players Championship | -$43,969.00 | -$3,693.40 |
January 2020
| Operator | Adjusted revenue | Tax collected |
|---|---|---|
| Total | $1,622,986.75 | $136,330.88 |
| DraftKings | $756,813.90 | $63,572.37 |
| FanDuel | $708,543.93 | $59,517.69 |
| Fantasy Football Players Championship | $67,516.86 | $5,671.42 |
| Fantasy Sports Shark | $44,495.16 | $3,737.59 |
| Yahoo Fantasy Sports | $37,073.14 | $3,114.14 |
| FullTime Fantasy Sports Network | $4,817.89 | $404.70 |
| SportsHub Games Network | $3,511.81 | $294.99 |
| Boom Shakalaka Inc. | $214.06 | $17.98 |
How popular is daily fantasy sports in Michigan?
Michigan is the 10th-most populous state in America, with more than 10 million residents. As a result, it is a rather large market for DFS.
It is estimated that DFS sites earn as much as $6.7 million annually from Michigan players. In fact, the state is responsible for almost 4 percent of all DFS contest entry fees across the US.
Estimates suggest Michigan has more than 37,000 active DFS players. Those players are responsible for almost $70 million in annual entry fees, the 10th-most of any state.
In the first two-thirds of 2020, DFS sites had adjusted revenues of nearly $7.2 million in Michigan with the state collecting more than $600,000 in taxes.
Law put end to long daily fantasy sports debate
The move came after years of legal wrangling on both sides. Up until then, the DFS industry’s largest operators believed DFS was legal, and continued to accept customers from inside the state. Meanwhile, Michigan Gaming Control Board Executive Director Rick Kalm said in 2015 that he believed DFS is not legal at all.
This opinion came in the wake of state Senate introducing legislation which would amend the Michigan penal code to specify DFS is a game of skill. While this would have legalized the activity, it wasn’t necessarily an attempt to regulate DFS operators in the state. Actually, it was more of a clarification. Regardless, the bill, and any efforts concerning DFS legislation died out in Michigan in subsequent years.
Another bill, which would have challenged the federal ban on sports betting, surfaced in the Michigan legislature in January 2017. The bill had a hearing in front of the House Regulatory Reform Committee, but no vote.
Gov. Snyder vetoed 2018 bill at end of term
Previously, there was an effort to legalize DFS by amending the Michigan penal code to specify fantasy sports as a game of skill. However, the bill went nowhere, and never included regulations or taxes for operators.
In 2017, Michigan lawmakers were considering online gambling legislation. Though the state’s online gambling bill failed to move in 2017, it carried over to 2018.
The bill, H 4926, would authorize several forms of online gambling, including online sports betting should the federal sports betting ban fall. The Lawful Internet Gaming Act passed the Michigan House of Representatives 68-40.
The Michigan Senate passed the bill on Dec. 20, 2018, by a 33-5 vote, sending it back to the House for concurrence where it passed 71-35.
However, on Dec. 31, 2018, former Gov. Rick Snyder vetoed the bill.
In the meantime, the largest DFS operators in the country continue to operate in the state.
Hall, Iden get law signed by Gov. Whitmer
Representatives Brandt Iden and Matt Hall sponsored a series of gambling expansion bills that were eventually signed in December 2019 by Whitmer, who was sworn in on Jan. 1, 2019.
Hall introduced the bill, H 4917, which allowed sports betting, on Sept. 4, 2019. It passed the House on Oct. 30, 2019 by a 65-43 vote.
The Senate passed it on Dec. 11 by a 35-3 vote, with the House approving amended changes, 98-10.
A bill that was part of the House’s original package, H 4307, was only approved by the House later on Dec. 4 because it needed a supermajority, as it contained a provision repealing a voter-approved ban from 1996 on political contributions from casino licensees and their employers.
The package legalized online gaming, online fantasy sports contests, sports betting and advance deposit wagering in horse racing.