Detroit Casinos Grapple with a 1.1% Revenue Decline in August

The revenue from Detroit’s three commercial casinos took a slight hit in August, falling 1.1% year-on-year to $104.9 million, according to the latest figures.

This decline is concerning for the city as it also marks a month-on-month drop, reflecting a trend that operators and stakeholders are keenly observing.

MGM Retains Market Leadership in Detroit

As the financial reports reveal, monthly aggregate revenue was notably lower than the $106.1 million recorded in August 2022. Furthermore, August 2023 was 2.2% behind July’s figure of $107.2 million, indicating a challenging month for the city’s gaming establishments.

Breaking down the revenue figures, $104.6 million came only from table games and slot machines, showing a slight increase of 0.1% compared to the same period last year. Sports betting, on the other hand, brought in adjusted gross receipts of $322,186 and handled a total of $10.0 million.

Among the three commercial casinos in Detroit, MGM continues to maintain its lead with a dominant 47% market share. In August, MGM reported $49.5 million in revenue from slots and table games, along with $85,644 in sports betting.

MotorCity Casino Hotel secured the second position with a 30% market share. The establishment generated $30.7 million in revenue from slots and table games, with wagering reaching $195,955.

Hollywood Casino at Greektown rounded off Detroit’s gaming market, holding a 23% share. The casino posted $24.4 million in casino revenue and $40,587 in sports betting.

Tax Contributions to the State and City

Despite the slight dip in revenue, the casinos in Michigan and Detroit continue to be a significant source of revenue for the state and the city.

Last August, they collectively paid $8.5 million in casino games-related taxes to the state and contributed $16.5 million in wagering and development agreement payments to the Motor City.

Additionally, the casinos contributed $12,179 to the state in sports betting taxes, and $14,885 to the City of Detroit.

These contributions play a crucial role in ing various public services and infrastructure projects, emphasizing the importance of the gaming industry in the local economy.

While the dip in August’s revenue is a cause for concern, industry experts are closely monitoring the situation, hoping for a rebound in the coming months as the city’s casinos work to attract patrons like FanDuel and enhance their offerings.

The challenges posed by the ongoing economic environment and competition from neighboring states will undoubtedly continue to shape the Detroit casino market in the months ahead.

Source:

“Detroit Casino Revenue Dips to $104.9m in August”, igamingbusiness.com, September 13^th, 2023.