In October, the three Detroit casinos faced a notable decline in monthly aggregate revenue (AGR), recording $82.8 million—a 19% drop from September’s $101.6 million. This decline is attributed to ongoing strike actions within the industry. The report delves into the specifics of the revenue breakdown, the market share of each casino, and the impact of the strike on table games, slots, and retail sports betting.
Revenue Breakdown and Market Share:
Total AGR for October reached $82.8 million, with $81.7 million generated from table games and slots, and an additional $1.1 million from retail sports betting.
MGM Grand Detroit Casino held the largest market share at 46%, followed by MotorCity Casino at 31%, and Hollywood Casino at Greektown with 23%.
Table Games and Slots Performance:
Table games and slot revenue experienced an 18.9% decline year-on-year compared to October 2022 and an 18.3% decrease from September 2023.
MGM reported a 19.6% year-on-year revenue decrease to $37.3 million, MotorCity was down 22.8% to $25 million, and Hollywood Casino at Greektown decreased by 11.7% to $19.4 million.
Tax Contributions:
The three Detroit casinos collectively paid $6.6 million in gaming taxes to the State of Michigan.
Wagering taxes and development agreement payments totaling $10.1 million were submitted to the City of Detroit.
From January 1 to September 30, table games and slots revenue decreased by 1.3% compared to the same period in 2022.
Retail Sports Betting Figures:
Retail sports betting handle for October amounted to $18.1 million.
Retail sports betting qualified adjusted gross receipts (QAGR) saw a 46.3% decline compared to October 2022 and a 28.6% decrease from September 2023.
MGM reported $365,705 in QAGR, MotorCity $669,028, and Hollywood Casino at Greektown $90,430.
The casinos contributed $42,531 in gaming taxes to the state and $51,982 in wagering taxes to the City of Detroit based on retail sports betting revenue.
Industry Impact of Strike:
The revenue downturn is linked to an ongoing strike by industry workers, primarily over pay-related issues.
The strike has contributed to challenges in maintaining normal casino operations and has affected the overall financial performance of the establishments.
October’s revenue figures reflect the challenges faced by Detroit casinos amidst ongoing strike actions. The decline in AGR, particularly in table games, slots, and retail sports betting, underscores the immediate impact on the industry’s financial health. As negotiations continue, monitoring the resolution of the strike and its subsequent influence on casino operations and revenues will be crucial for stakeholders and industry observers.