DraftKings was a company that started in the Daily Fantasy Sports industry, but it has quickly emerged into one of the leaders in the sports betting industry. DraftKings will continue to grow over the next few months as it was announced that it will be launching in Michigan.
DraftKings has partnered with Bay Mills Resort & Casino, which is located in the Upper Peninsula in Michigan. Bay Mills is a tribal gaming venue, and they have been searching for a company to power its mobile sportsbook.
As part of the agreement, DraftKings will also be operating a retail sportsbook at the casino, but the big money will be coming from the mobile app. This deal has been in the works for some time, but the deal still had to be approved by the Michigan Gaming Commission before it could be announced.
Michigan approved legalized sports betting last December, and the state wasted little time in getting the industry up and running. The first retail sportsbook went live in early March, just days before live sports were shut down throughout the United States.
DraftKings has done plenty of research into the potential of sports betting in Michigan, and they are convinced it can become a major player in the industry. Michigan lawmakers are pleased that DraftKings will be joining the market and bringing in plenty of additional tax revenue.
One of the biggest reasons that Michigan went ahead and legalized sports betting was because the state realized that bettors were traveling out of state to do their betting. Indiana is one of the fastest-growing sports betting markets in the country, but that growth will be slowed as Michigan begins to add more big players.
Joining the Market at Perfect Time
DraftKings recently became a publicly-traded company, and their prices have bounced around since appearing on the stock market. Prices dropped earlier this week, but they started to climb back up with the announcement that they are now launching a new app in the state of Michigan.
DraftKings is also joining the market in Michigan fresh on the heels of both the National Hockey League and National Basketball Association announcing plans to return. Detroit is home to the Pistons of the NBA and the Red Wings of the NHL.
This will be the eighth state in which DraftKings will be offering a mobile sports app, and the seventh state that will feature a DraftKings retail sportsbook. DraftKings currently offers a mobile app in Colorado, Indiana, Iowa, New Jersey, New Hampshire, Pennsylvania, and West Virginia.
They operate a retail sportsbook in Colorado, Iowa, Mississippi, New Hampshire, New Jersey, and New York.
DraftKings is reportedly also trying to find a way to launch in the state of Illinois, but several hurdles remain. The Midwest portion of the country has seen tremendous sports betting growth over the past 12 months.
The official announcement from these two companies did not provide any specific dates as to when the mobile app or retail sportsbook would be up and running. It would seem likely that DraftKings would aim to get both up and running before the NBA and NHL resume their seasons.
The state of Michigan has received plenty of criticism of their handling of the coronavirus pandemic, but the state has started to reopen over the last few weeks. Tribal casinos throughout the state have been reopening as well, and the Bay Mills Resort and Casino is taking reservations for this weekend.
Now that DraftKings Sportsbook has the official approval, they can begin developing their mobile app and creating their retail sportsbook in hopes of launching this summer.