In October, Detroit’s three casinos faced a challenging year-on-year revenue decline of nearly 10% in their combined table games and slots operations. According to the Michigan Gaming Control Board, the aggregate revenue for the month was $102.8 million. Among the three casinos, MGM Grand Detroit held the largest market share at 46%, followed by MotorCity Casino at 32% and Hollywood Casino at Greektown at 22%.
Overall Revenue Performance:
The combined revenue from table games and slots at MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown reached $100.7 million in October, representing a decrease of 9.6% compared to the same period in 2021. However, there was a minor improvement from September 2023, with a slight 0.1% increase in revenue.
Individual Casino Performances:
Among the three casinos, MGM Grand Detroit faced the most significant decline, with its revenue plummeting by 11% to $46.4 million in October 2023. MotorCity Casino also experienced a notable drop of 12.3%, reporting monthly gaming revenue of $32.4 million. On the other hand, Hollywood Casino at Greektown managed to buck the trend with a fractional 0.3% increase in monthly gaming revenue, reaching $21.9 million.
Wagering Taxes and Development Agreement Payments:
In terms of tax contributions, the three Detroit casinos collectively paid $8.2 million in wagering taxes to the state of Michigan for October. This amount showed a decline compared to the same month in the previous year, which saw tax payments of $9 million. Additionally, the three casinos reported submitting $12.4 million in wagering taxes and development agreement payments to the City of Detroit.
Retail Sports Betting Impact:
While the table games and slots revenue experienced a downturn, the retail sports betting segment also faced challenges. The qualified adjusted gross receipts (QAGR) from retail sports betting fell by 20.8% compared to October 2021 and 19.4% compared to September 2023. The three Detroit casinos collectively reported a retail sports betting handle of $23.5 million, with gross sports betting receipts amounting to $2.1 million.
Sports Betting Taxes:
Retail sports betting gaming taxes paid to the State of Michigan were $79,182, showing a decline from $99,977 in October 2021. Additionally, the three Detroit casinos contributed $96,778 in wagering taxes and development agreement payments to the City of Detroit.
October 2023 proved to be a challenging month for Detroit’s casinos as they faced a 9.6% YoY decline in combined table games and slots revenue. MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown all experienced varying degrees of revenue drops, with the former two reporting double-digit declines. Furthermore, retail sports betting faced a considerable decrease compared to the previous year and September 2023. Despite these challenges, the casinos’ tax contributions to both the state of Michigan and the City of Detroit remained substantial. As the gaming industry navigates through fluctuations, continuous analysis and adaptation strategies will be crucial for sustained growth.