On the same day that one of its rivals inked an online gambling deal with a Michigan tribal casino group, PointsBet announced a similar arrangement that will see its platform launch statewide in the Wolverine State, pending state regulatory approval.
The bookmaker, which is already involved with sports betting in New Jersey and Iowa, through its subsidiary PointsBet Michigan LLC, announced a partnership with the Public Enterprise and Finance Commission of the Lac Vieux Desert Band of Lake Superior Chippewa Indians.
Michigan legalized online sportsbooks and online casinos, pending licensure, last month after years of policy consideration. The new laws allow the three Detroit commercial casinos and the dozen gaming tribes to offer gambling over the internet.
PointsBet said it plans to offer both sports betting and casino in the state. The tribe plans to also utilize its own brand, according to the announcement.
“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,” PointsBet Group CEO Sam Swanell said in a statement.
PointsBet and the tribe are also in “continued exclusive negotiations” regarding a retail sportsbook at the Northern Waters Casino Resort, located on the tribe’s reservation in Watersmeet.
Terms of deal length
The initial term of the deal is 20 years, with potential for an additional five years.
In exchange for gaining market access to Michigan, PointsBet will pay the tribe undisclosed fees and an undisclosed portion of net gaming revenues. According to a presser, PointsBet will be responsible for the licensing and regulatory costs.
Sports betting and casino both come with $150k fees, as well as $50k annually for renewal. According to the announcement, “[n]either party may terminate for convenience during the initial or additional term.”
“Upon expiry or termination, PointsBet and [the tribe] have negotiated rights related to retention and utilization of client data acquired during the term, with PointsBet retaining the right to utilise client data it has directly acquired via the online channels,” PointsBet said in a presser.