Jlslot2.Royal Club MOD APK,200jili Philippines

Detroit Casinos See 28.2% Sink in Revenue

Published on: 28/12/2023

In November 2023, the three Detroit casinos faced a notable setback, experiencing a considerable decline in their monthly aggregate revenue (AGR) which plummeted to $79.1 million. This stark 28.2% decrease from the pre-strike monthly average of $105.9 million in 2023 was a significant blow. The month’s casino revenue of $76 million marked the lowest recorded for a full month since February 2001.

The dense downtown area of Detroit, Michigan, featuring dozens of tall buildings and skyscrapers, as well as a large stadium with the Ford logo on its roof.

During the month of November 2023, three Detroit casinos suffered a significant setback, going through a considerable decline in their monthly aggregate revenue (AGR), plummeting down to $79.1 million.
?Josh Garcia/Unsplash

Casinos Workers at MGM Grand Detroit Managed to Ratify New Contract

In November 2023, Detroit’s trio of casinos faced a notable setback, experiencing a substantial decline in their combined monthly revenue. The aggregate revenue (AGR) for the month was reported at $79.1 million, marking a stark 28.2% decrease from the pre-strike monthly average of $105.9 million in 2023.

November’s casino revenue of $76 million, encompassing earnings from table games, slot machines, and $3.1 million generated from retail sports betting, recorded the lowest figure for a complete month since February 2001. This financial outcome, nearly the lowest in the entire history of Detroit casinos, which commenced operations in December 2000, depicted a concerning trend in their financial performance.

Although the reported earnings were $5.7 million lower than October’s total of $81.7 million, the results were deemed somewhat favorable considering the impact of the casino workers’ strike, which affected more days in November than in October. This financial report also represented a significant 23.9% decline from November 2022’s gambling revenue of $99.9 million.

The resolution of labor disputes brought relief to the affected casinos. Employees at MGM Grand Detroit concluded a new contract with the employer, effectively ending a 47-day strike at the property. Additionally, workers at MotorCity Casino and Hollywood Casino at Greektown voted to terminate their 34-day strike two weeks earlier.

MGM Grand Detroit, enduring the entire month under the strike, still managed to garner the most substantial revenue among the three, reaching $30.6 million in November. However, this figure marked a 38.2% decline from the 2023 average before the strike. MotorCity Casino reported revenue of $24.7 million, a slight decrease from October’s $25 million, while Hollywood Casino at Greektown saw an increase in revenue, rising from $19.4 million to $20.7 million.

Table Games and Slot Revenue Dropped by 23.9% Year-on-Year

In November 2023, the revenue from table games and slot machines at Detroit’s casinos took a notable plunge, declining by 23.9% compared to the same month in 2022. Moreover, the overall monthly revenue witnessed a 7% dip in comparison to October 2023. Throughout the period from January 1 to November 30, the revenue generated from table games and slots collectively dropped by 3.2% compared to the previous year.

The three Detroit casinos contributed $6.2 million in gaming taxes to the State of Michigan in November, marking a decrease from the $8.1 million paid during the same month last year. Delving into retail sports betting, these casinos reported a total handle of $15.3 million and a gross revenue of $3.1 million for November. The gaming taxes paid to the state for retail sports betting during this month amounted to $116,769, while an additional $142,718 in wagering taxes was reported to the City of Detroit based on the revenue from retail sports betting.

In October, fantasy contest operators reported a total adjusted revenue of $2.7 million, contributing $229,544 in taxes. From January 1 through October 31, these operators reported an aggregate fantasy contest adjusted revenue of $19.5 million, paying $1.6 million in taxes. Comparing the average revenue generated from slots, table games, and sports betting, which stood at $106.5 million per month before the strike, the combined revenue in October and November was $82.8 million and $79.1 million, respectively.

This downturn indicates a collective revenue loss of approximately $51.1 million during the strike, constituting 4.6% of the current $1.12 billion in combined gaming revenue for 2023. This setback may potentially impede the three casinos from surpassing the combined yearly revenue total of $1.28 billion generated in 2022.

Detroit Casinos Revenue Also Sank in September 2023

In the vibrant Detroit casino scene, the three commercial casinos reported a combined revenue of $101.6 million in September 2023, marking a slight 1.7% decrease from the same period the previous year, when revenue reached $103.4 million. This figure also represents a 3.2% decline from August 2023, where the total revenue stood at $104.9 million. Out of the total revenue, approximately $100.0 million was derived from table games and slot machines, indicating a decrease of 0.8% compared to the previous year and a more pronounced 4.4% dip from August.

In a separate category, retail qualified adjusted gross receipts for September amounted to $1.6 million. While this showcases a significant decrease of 39.4% from the previous year, it marks a notable improvement from August 2023, where only $322,186 was reported. The total betting handle for the month tallied $18.1 million. The release of Michigan’s online gambling data for September revealed gross receipts from internet gaming and sports betting, including commercial and tribal operators, reaching $210.4 million.

Online casinos emerged as the primary revenue driver, contributing $166.4 million in gross receipts. This segment displayed significant growth, marking a 29.3% increase compared to the same period in the previous year. The dynamics in Detroit’s casino industry reflect an evolving landscape shaped by both land-based and digital factors. MGM retained a significant lead in the Detroit casino market, maintaining a commanding 44% market share. Their revenue from table games and slots amounted to $44.7 million, while they contributed $43,528 to the city’s sports betting Qualified Adjusted Gross Receipts (QAGR).

MotorCity secured the second spot with a solid 31% market share, generating revenue of $31 million from table games and slots. Additionally, they reported retail betting QAGR of $875,616. Hollywood Casino at Greektown held a 25% market share, with revenue totaling $24.3 million from table games and slots. Their betting QAGR stood at $655,816.

Collectively, these casinos significantly contributed to Michigan’s financial landscape by paying $8.1 million in casino games-related taxes to the state and $12.3 million in wagering and development agreement payments to the City of Detroit. Taxes from sports betting were also noteworthy, with $59,533 paid to the State and $72,763 to the City of Detroit. These financial contributions underscore the pivotal role of Detroit’s casinos in the region’s economic development and government revenue.

Michigan Gaming Control Board (MGCB) Renewed Three Casino Licenses in August 2023

The Michigan Gaming Control Board (MGCB) recently announced a unanimous decision to extend the licenses of Detroit’s trio of commercial casinos—MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown—ensuring their continued operation until August of the following year. This renewal signifies a continuation of the regulatory oversight governing these prominent establishments.

A fundamental aspect of this operational framework involves taxation. Licensed casinos in Detroit adhere to an 18% tax rate on adjusted gross receipts, with the collection of daily wagering tax facilitated through electronic funds transfer. This economic structure allocates 8.1% of the wagering tax to the State of Michigan, while the City of Detroit receives 9.9%, supplemented by development agreement payments.

Further fiscal mechanisms come into play, particularly concerning retail sports betting operations. Qualified adjusted gross receipts (QAGR) from these sports betting activities are subject to an 8.4% tax. Additionally, licensees are obligated to pay an annual fee aimed at covering the operational expenses of the Michigan Gaming Control Board.

The recent financial performance of the three licensed Detroit casinos—MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown—has drawn attention. July’s figures revealed a collective revenue of $107.2 million, maintaining a status quo in comparison to the previous year, with a slight uptick from the preceding month’s results.

The primary drivers behind this financial outcome were the slots and table games, contributing $106.7 million—an increase of 0.7% compared to the previous year. In the domain of sports betting, figures showed a degree of variation, with Qualified Adjusted Gross Receipts (QAGR) totaling $485,763, indicating a 62.0% decrease, while the betting handle reached $8.0 million. These revenue trends offer valuable insights into the performance of these casinos within the broader gambling industry landscape.

The executive director of the Michigan Gaming Control Board (MGCB), Henry Williams, recently emphasized the significance of renewing a casino license, highlighting its representation of a consistent commitment toward maintaining an establishment characterized by credibility and responsibility:

“Renewing a casino license reflects an ongoing commitment to operate a reputable and responsible establishment. It signifies a dedication to maintaining high standards of quality, security, and fair play within the industry. The renewal of these licenses is validation of the casinos’ commitment to operating as responsible and valued corporate citizens within Michigan that contribute positively to the state’s gambling industry while ensuring a safe and enjoyable experience for all patrons.”Henry Williams, Executive Director, Michigan Gaming Control Board (MGCB),Press Release

Have you enjoyed this article? Then share it with your friends.
Share on Pinterest
A US Dollar bill lying flat on a white surface, prominently displaying the face of former US President George Washington.

Latest Industry Articles

A person holding a mobile smart phone which is displaying a graph with projected views on it.
31Dec

Kentucky Revenue Growth is On Track

Muhammad Gregory