Michigan online gambling could create thousands of jobs

Michigan Online Gambling Is Coming, And So Are New Jobs

This article may be outdated. Get the latest news on Industry here.

Last week, the Michigan legislature passed an online gambling bill in the eleventh hour of its legislative session. A pending signature from Gov. Rick Snyder is now the only thing standing in the way of full legalization.

Should the bill cross the finish line — something that seems likely — Michigan will become the fifth state with legal online gambling. And it’s already one of the 11 that offers online lottery products. The Michigan online lottery is arguably the most robust in the country.

So why are states increasingly turning to online gambling?

The top-line answer, of course, is revenue. But as New Jersey and other early adopters have learned, the economic benefits of online gambling don’t stop there.

It’s not all about revenue

Direct revenue may be the primary driver of states’ interest in online gambling, but it’s just the tip of the economic iceberg.

While the NJ online gambling industry is on pace to generate close to $300 million in 2018, it has also:

  • Helped foster an environment that allowed two new land-based casinos to open in Atlantic City
  • Packed AC casino databases with new, younger customers
  • Created indirect revenue streams ranging from local advertising spend to the existence of ancillary vendors
  • Allowed the state to increase tax revenue by tracking and taxing slot winnings above $1,200, and table game winnings above $5,000

These things are rarely mentioned in the discussions surrounding online gambling.

Another one that is perhaps more beneficial and receives even less attention is job creation.

Online gambling supports thousands of jobs

Any perception that online gambling is a job killer is simply wrong. According to a June 2017 white paper from iDevelopment and Economic Association (iDEA), it is a job creator.

The paper, entitled “Economic Impact of New Jersey Online Gaming: Lessons Learned,” came to the conclusion that the NJ online gambling industry is responsible for 3,375 jobs and $218.9 million in employee wages. Keep in mind that the iDEA numbers covered 2014-2016 and don’t include the reopening of two casinos in 2018.

“These jobs were not created by legislative quotas but rather by capital and human resource investments in competitive markets,” Gene Johnson, executive vice president at Victor Strategies and co-author of the white paper told Online Poker Report.

Tallies include 821 direct jobs with casinos and gaming suppliers, along with another 2,552 indirect and induced full-time equivalent positions.

Claim Your $1,050 Bonus at DraftKings Sportsbook
Up to $1,050 FREE
New User Bonus. T&Cs Apply.
NBA Playoffs Promo: Bet $5 Win $150
PLUS $50 Free On Deposit
PLUS Up to $1,000 Deposit Bonus
To Claim: Click Play Now

What can Michigan expect?

Johnson expects to see numbers from Michigan online casino sites that will rival those from New Jersey.

“iGaming generated close to $1 billion in total positive economic impact over the first three years following implementation in New Jersey,” he said. “If iGaming is legalized and regulated in Michigan, the state should see similar benefits.”

While New Jersey’s early adoption brought some overseas businesses into the state, Johnson also noted that it suffered through growing pains as a brand new industry.

“Michigan can avoid those teething pains and benefit from the New Jersey experience,” he said, “borrowing the best aspects as a template for its own development.”

Online gambling will no doubt bolster Michigan’s land-based casino industry and send tens of millions of dollars to the state. Those benefits will be apparent to all. But as it has in New Jersey, online gambling should also create thousands of new jobs for Michiganders.

- Steve covers nearly every angle of online poker in his job as a full-time freelance poker writer. His primary focus for OPR is the developing legal and legislative picture for regulated US online poker and gambling.
Privacy Policy