Michigan has three commercial casinos and 24 tribal casinos that will be eligible to offer mobile sports wagering pending license approval.
The three Detroit-based commercial casinos are expected to offer retail sports betting this spring.
Regulation of fantasy sports sites is also slated to take about a year to develop.
While the legalization process of online sports betting in Michigan is on par with the timetable of rollouts in other states, it presents a setback for casinos looking to bring in quick revenue in 2020.
Casino operators would like for sportsbooks to be open in time for the NCAA Tournament, which begins in mid-March.
PointsBet and Stars Group were among the first operators to agree to mobile sports betting deals with Michigan casinos, but those partnerships will likely be put on hold until the state is closer to launching its mobile product.
The delay of Michigan online sports betting could be a boon for nearby states including Indiana and Pennsylvania.
In Indiana, DraftKings and FanDuel combined for $232m in December online sports betting handle.
Pennsylvania took in $343m in sports wagering handle last month with 87% of bets placed online.