Three leading brands in the US sports betting industry, FanDuel, DraftKings, and BetMGM, have taken action to mobilize their customers in Michigan against a proposed increase in taxes on iGaming. The companies have all sent emails to their Michigan customers, urging them to oppose two tax bills that could result in a 0.1% increase in tax on sports betting and a 1% increase on online casinos.
The coordinated campaign by FanDuel, DraftKings, and BetMGM also includes a link to the Sports Betting Alliance (SBA), which represents the big three brands along with Fanatics Sportsbook. This link directs Michigan customers to a form that they can fill out and send to legislators to voice their opposition to the tax hike.
In addition to the three major brands, Fanatics Sportsbook has also expressed its opposition to the proposed tax increase, stating that major policy discussions like this should involve extensive deliberation and discussion. While Fanatics did not directly email its customers about the issue, it supports the advocacy efforts of its fellow SBA members.
The emails sent by FanDuel, DraftKings, and BetMGM to Michigan customers highlighted the potential negative impacts of the tax hikes, including devaluing promotions, bonuses, worsening odds, and putting new jobs at risk. These concerns have led to a united front against the proposed tax increase within the industry.
FanDuel currently holds 46% of the revenue share in the US sports betting market, followed by DraftKings at 32% and BetMGM in third place. Despite these market shares, a recent report by YouGov indicated that DraftKings was the most used sportsbook in the US, followed closely by FanDuel, bet365, BetMGM, and ESPN Bet.
The collective efforts of these major players in the sports betting industry reflect a shared concern over the potential impact of increased taxes on their operations and the broader industry. By mobilizing their customers to oppose the tax hike, FanDuel, DraftKings, BetMGM, and Fanatics are working to protect their interests and ensure a favorable regulatory environment for the future of iGaming in Michigan.