Michigan is the 15th state to legalize sports betting in the United States. However, it failed to stop the sports betting stocks drop on Friday. More states are legalizing sports wagering, but individual states' moves have little impact on the market.
DraftKings shares went down by 1.61 percent to $52.70. Penn National Gaming was down 0.23 percent at $106.94. Also, MGM Resorts International dropped 0.43 percent to $31.67. Although Wynn Resorts has a higher value at $106.88, its value dropped by 2.09 percent.
Despite the drop in the market values, online sports betting remains a fast-growing industry. According to pay per head sportsbook reports, 90 percent of sports wagers made in New Jersey came from online sources.
Online bookie software experts said that Michigan has a business-friendly tax rate. Also, the state has competitive licensing fees. Thus, many companies want to know how to become a bookie and start a sportsbook in the state.
Michigan has a reliable commercial and tribal casino infrastructure in place. Thus, many sports wagering insiders bet that Michigan would enjoy quick success. They estimated that the state would earn around $40 million a year.
MGM is expected to enjoy long-term growth opportunities in its Macau assets, Japan project, and US sports betting. In the United States, the company's 21 casinos would benefit from the growing sports betting market.
The US sports wagering market is expected to have a value of $6.2 billion by 2024. Thus, more companies are venturing into the country to have their share of the sports betting pie.