Detroit Casinos See $102.9 Million in October Revenue Despite Sports Betting Losses

Detroit’s three casinos—MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown—collectively reported $102.9 million in aggregate revenue (AGR) for October 2024. Most of this income stemmed from table games and slot machines, which generated $103.7 million. However, the casinos experienced losses in retail sports betting, amounting to a negative AGR of $826,796.

Casino Market Shares and Performance

MGM Grand Detroit continued to lead the market, commanding a 48% share. MotorCity Casino followed with 30%, while Hollywood Casino at Greektown ed for 22%.

Revenue from table games and slots in October 2024 saw a significant 26.9% increase compared to October 2023. This jump can be attributed partly to last year’s casino employee strike, which disrupted operations and led to lower-than-average revenue in October 2023. Month-over-month, October 2024 also outperformed September 2024, with revenue rising by 2.4%.

From January through October 2024, cumulative revenue from table games and slots showed a year-over-year growth of 3%, reflecting the resilience of Detroit’s casino market.

When broken down by casino, October’s table games and slots revenue increases were:

• MGM Grand Detroit: A 32.4% rise to $49.4 million.
• MotorCity Casino: A 26.7% increase, totaling $31.7 million.
• Hollywood Casino at Greektown: A 16.5% gain, amounting to $22.6 million.

Increased Contributions to State and City Taxes

Detroit’s casinos contributed $8.4 million in gaming taxes to the State of Michigan in October 2024, a noticeable improvement from the $6.6 million paid in the same month last year. Additionally, the casinos collectively paid $12.8 million in wagering taxes and development agreement payments to the City of Detroit.

While table games and slots delivered robust results, retail sports betting faced challenges in October 2024. The casinos reported a total betting handle of $22.19 million. Despite this volume, gross receipts ended at negative ($822,552).

Qualified adjusted gross receipts (QAGR) for retail sports betting fell by $2 million compared to October 2023 and by $1.6 million from the previous month, September 2024.

A breakdown of October’s sports betting QAGR by casino highlights the challenges:

• MGM Grand Detroit: negative ($474,293)
• MotorCity Casino: negative ($528,408)
• Hollywood Casino at Greektown: $175,905

State gaming taxes derived from retail sports betting amounted to $6,649, while the casinos reported $8,127 in wagering taxes paid to the City of Detroit.

Fantasy Contest Revenue

Fantasy sports operators reported $1.1 million in adjusted revenues for September 2024. This sector contributed $89,282 in taxes to the state during the month.

Detroit’s casino sector showcased its resilience in October 2024, achieving strong growth in table games and slots revenue while grappling with losses in retail sports betting. Despite challenges, the casinos made substantial contributions to state and local tax revenues, underlining their significant role in Michigan’s economy.

Source:

”Detroit casinos report $102.9M in October revenue”, michigan.gov, November 12, 2024.