FanDuel, DraftKings, and BetMGM have emailed Michiganders urging them to oppose a proposed hike on iGaming taxes. [Image: Shutterstock.com]

Big brands mobilize customers

The three market leaders in the US sports betting industry have all campaigned their customers in Michigan, urging them to oppose a proposed sports betting and online casino tax rate increase.

According to Sports Betting Dime on Thursday, FanDuel, DraftKings, and BetMGM “all sent similarly worded emails” to their Michigan customers. 

call on Michiganders to contact their state legislators to oppose two proposed tax bills

The email campaigns sent this week by the three iGaming giants call on Michiganders to contact their state legislators to oppose two proposed tax bills.

Should the bills pass, tax on sports betting and online casinos will rise by 0.1% and 1%, respectively. 

A mutual concern

The anti-tax hike campaign appears to be a coordinated strategic action by FanDuel, DraftKings, and BetMGM with the emails all ending with a link to the Sports Betting Alliance (SBA), which represents the big three brands and Fanatics Sportsbook. 

The SBA link takes Michigan customers to a form they can fill out and send to legislators.

That FanDuel and DraftKings are acting in concert comes in the same week that US bankers disdained a federal petition brought against the pair’s alleged collusion. 

US investment bankers Stifel Financial Corp said claims by two US senators that the brands worked together via the SBA to get some states to ban pick ’em daily fantasy sports games had “zero validity,” and ran a “negligible risk of enforcement” by the Federal Trade Commission.

According to a sample of the Michigan emails sent by FanDuel, DraftKings, and BetMGM, the brands warn that the increased tax hikes could devalue promotions, bonuses, worsen odds, and place hundreds of potential new jobs at risk.

Fanatics adds its voice

Sports Betting Dime cited the fourth member of the SBA, Fanatics Sportsbook, as stating that while it didn’t email its Michigan customers about the tax hikes, it also opposed the legislation. 

Fanatics states that like its SBA co-members, it believes “major legislative policy discussions like increasing tax rates on the industry sits should require extensive deliberation and discussions.”

“While we did not engage our customers directly on this issue, we support the advocacy efforts of the other member companies.”

According to recent media, FanDuel holds 46% of the combined revenue share in the US sports betting market, followed by DraftKings (32%) with Entain-owned BetMGM in third. 

According to a Monday report by UK-based digital market research firm YouGov, however, over the previous week, DraftKings was the most used sportsbook in the US (14%), followed by FanDuel (13%), bet365 (12%), BetMGM (10%) and ESPN Bet (9%).