In November, Detroit’s three casinos recorded a monthly revenue of $79.1 million, as reported by the Michigan Gaming Control Board. The figure encompasses earnings from both table games and slots, totaling $76 million, while retail sports betting contributed an additional $3.1 million.
Year-on-Year and Monthly Decline:
The November revenue marked a 23.9% decrease compared to the same month in 2022 and a 7% decline from October 2023. The industry faced challenges due to a recent strike at MGM Grand Detroit, Hollywood at Greektown, and MotorCity casinos. The strike at MGM Grand Detroit concluded almost 10 days ago, following the ratification of a new contract. MotorCity Casino and Hollywood Casino at Greektown workers had previously approved a deal in the preceding month.
Impact of Strike:
The strike, the first in the history of the Detroit Casino Council representing 3,700 employees across the three casinos, had a notable impact on the industry’s overall performance. The affected workers, affiliated with five unions, namely UNITE HERE Local 24, UAW, Teamsters Local 1038, Operating Engineers Local 324, and the Michigan Regional Council of Carpenters, participated in the labor action.
Tax Contributions:
For November, the three Detroit casinos contributed $6.2 million in gaming taxes to the State of Michigan, down from $8.1 million reported for the same period in the previous year. The casinos also reported submitting $9.4 million in wagering taxes and development agreement payments to the City of Detroit.
Retail Sports Betting Highlights:
Despite the challenges, retail sports betting saw a handle of $15.3 million for November, resulting in gross receipts of $3.1 million. The Qualified Adjusted Gross Receipts (QAGR) for retail sports betting demonstrated a positive trend, increasing by $1.2 million compared to November 2022.
The November revenue report for Detroit’s casinos reflects a complex operating environment, influenced by the recent strike and broader industry dynamics. While facing a year-on-year decline and a monthly decrease, the resilience of retail sports betting and the resolution of the strike at MGM Grand Detroit indicate potential for recovery. The industry’s ongoing contributions to state and local taxes underscore its significance within the broader economic landscape. As Detroit’s casinos navigate challenges, attention will turn to future developments and their impact on the region’s gaming and entertainment sector.