DFS Rules Being Drafted in Michigan

It appears as if the Daily Fantasy Sports industry in Michigan will finally have a set of rules in place by the end of the year.

The Michigan Gaming Control Board has been working on these rules since back in 2019, but they could soon be released.

DFS sites were first legalized on December 19, 2019, in Michigan when Governor Gretchen Whitmer signed Act Number 157 into law. That law required lawmakers to approve DFS rules, and there is currently a 52 page draft on the table.

Michigan also passed a law at that same time that allowed DFS sites to operate while the rules were being finalized. It was expected that this would be done quickly, but there have been several reasons for the delay.

Much of the focus in Michigan has been on other iGaming options, but the DFS sites have performed well. These rules should enhance the customer experience and will keep things fair for both parties.

Experienced Players Are Separated

There are rules in place that will protect DFS players in Michigan and also rules that separate what types of players are entering contests. DFS sites do accept players that are at least 18 years of age, while sports betting has a 21-year-old age requirement.

Michigan will have a rule in place that keeps experienced players from joining “Beginners” contests, and these players will also be marked so that other players can stay away from them. Anyone that has entered over 1,000 contests and won at least $1,000 three separate times will be included in this group.

This rule should help new DFS players to enter the industry, as these contests were once dominated by professional players. The goal is to attract a large customer base, but beginning players will also be protected.

DFS players in Michigan cannot build up a roster using players from the same team, and the roster cannot be “autodrafted.” This is to keep DFS sites from looking and acting like sportsbooks.

DraftKings, FanDuel Leading the Way

There are currently eight DFS operators in the state of Michigan that are paying taxes on the revenue that is brought in. The revenue is taxed at a rate of 8.4%, but Michigan is seeing much more tax money come in through sports betting.

Of the eight operators, it is no surprise that DraftKings and FanDuel are leading the market in this industry. These two companies helped make DFS popular in the US, and they have dominated the market share throughout the US.

DraftKings held 58 percent of the market share in Michigan in 2020, while FanDuel was next on the list at 37.9 percent. That means that the other six operators had less than four percent of all of the DFS action in Michigan.

The numbers so far in 2021 have been similar, but FanDuel has started to catch up to its rival this year. This will be the first time that online sports betting is live for the NFL season, and it is expected to hurt the DFS numbers.

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