Michigan the latest state to allow advanced deposit wagering

While live Thoroughbred racing isn't currently running in Michigan, the industry appears poised to create a new foothold through advanced deposit wagering, which was approved Tuesday under certain conditions by Michigan Gaming Control Board Executive Director Richard S. Kalm.

“The order should enable the state’s horse racing industry to gain new followers through ADW and maintain protection for citizens who wish to place wagers on live and simulcast pari-mutuel racing in Michigan using their mobile phones,” Kalm said. “Before ADW can go live in Michigan, the race meeting licensee and the certified horsemen’s organizations also must agree to a contract with a provider.”

In December 2019, Michigan's Horse Racing Law of 1995 was amended to allow a race meeting licensee to use contracted third-party firms to facilitate wagering on live and simulcast pari-mutuel racing. A bettor creates an account with the third-party facilitator and can use a mobile device or computer to place wagers on pari-mutuel races using the money on deposit.

The order requires third-party facilitators to:

• Apply for a license

• Provide a proposed plan of operation

• Submit any proposed system operation plan changes to the MGCB executive director for pre-approval

• Pay a $1,000 application fee and a $500 license renewal fee to the MGCB to cover costs of background investigations

• Use and communicate pari-mutuel wagers to a pari-mutuel system that meets all Michigan requirements

The facilitator may not sell or share an applicant or account holder's confidential information or use confidential information for any purpose not related to authorized account wagering without the applicant or account holder’s authorization.  

Currently, live and simulcast pari-mutuel wagering is authorized at Northville Downs racetrack, which offers standardbred racing. The track was ordered to remain closed through May 28 under Gov. Gretchen Whitmer’s executive order due to the COVID-19 health emergency.

Northville Downs, home to harness racing, is scheduled to race most Fridays and Saturdays throughout the year once cleared due to the COVID-19 pandemic. Most states with live racing past or present have also allowed online wagering, with Texas among the exceptions.