With the state of Michigan opening up legal wagering two companies have been quick to act fast in securing crucial partnerships. Stars Group and Pointsbet have both announced that they have teamed up with tribal companies in a highly likely attempt to be granted access into the regulated market space.
These partnerships are required in order for outside companies to gain state approval, allowing them to operate legally. This type of deal should benefit all parties involved.
Outside companies with more experience and wealth get to offer their services. Tribes take a cut of revenues earned without having to incur large setup costs and the end-user ends up with a more feature-packed, robust betting platform to wager on. We would expect to see an app identical to the Pointsbet app in New Jersey launched in Michigan as soon as they have clearance.
Stars group has shaken hands with LTBB Odawa and Pointsbet has joined forces with Lac Vieux Desert Public Enterprise. Representatives of Pointsbet and LVD Public Enterprise have had chance to officially respond to the partnership;
PointsBet Group CEO Sam Swanell said: “PointsBet is pleased to have reached agreement for both online sportsbook and online casino operations with such a forward-thinking Tribe, and we look forward to many years of great success working together in Michigan”.
James Williams, Jr., Lac Vieux Desert Tribal Chairman, stated: “The Tribe is excited to join forces with PointsBet to further the Tribe’s economic development efforts and expand gaming online as allowable under Michigan and federal law. We are confident that this new opportunity will strengthen the Tribe’s self-sufficiency and self-determination efforts and provide much needed revenue to continue to expand and enhance tribal governmental services as well as provide jobs for the LVD community.”
It is reported that Pointsbet are also pushing hard in the negotiations to operate a land-based operation on top of their online presence at the North Waters Casino resort at Watersmeet, part of the Tribe’s reservation.
The deal made will last for an initial 20 year period. There will then be an automatic renewal of 5 years unless there is written confirmation from either party stating a desire not to renew.
Fewer details have been released in relation to the Stars Group and Pointsbet partnership although senior figures of both parties have been caught on record;
Robin Chhabra, Chief Executive Officer of FOX Bet said
“We are excited to announce this agreement with the Odawa tribe, which further strengthens our market access as we work to continue to build our FOX Bet business into one of the leaders in the emerging U.S. online betting and gaming market,”.
“The Tribe’s partnership with The Stars Group extends beyond our reservation and places the thrill of world-class sports betting and online gaming under every finger-tip sliding across a touch screen in the State of Michigan,” said Fred Harrington Jr., Tribal Council of LTBB Odawa.
All in all good news for the state, in my opinion. That is as long as Stars Group and Pointsbet are given state approval to operate, backed up with a granted license in which to do so. The process should just be a formality and a matter of time. Once approval has been granted, we anticipate no time being wasted in getting the online wagering service live and operational.