Summary
- Three casinos earned $103.4 million in September.
- The third quarter closed with a 7% revenue decrease.
- MGM Grand Detroit led the market share at 48%.
In the state of Michigan, there are only three commercial casinos in operation, all of which are located in Detroit.
The venues usually fare well each month, generating earnings from table games, slots, and sports betting. Unfortunately, September was not a good month for the casinos and revenues were down. The MGM Grand Detroit, Hollywood Casino at Greektown and MotorCity Casino Hotel generated only $103.4 million for the month.
A Decrease from September 2021
The goal of any casino is to continue to earn more than the previous year. With an uptick in earnings, the casino remains successful and continues to be able to compete with others in the area or state. In Detroit, the three commercial casinos only brought in $100.8 million in September from table games and slots. The remaining $2.6 million for the month came from retail sports betting.
Table game and slot revenue was down 5.7% when compared to September 2021. From August, revenues dropped 3.5%. What caused this significant decrease? When compared to last year, it is important to note the COVID-19 pandemic. Players were just getting back to the action in September of last year and players were out in full force to enjoy casino games, causing an increase in traffic and spending.
From the amount earned in September, casinos paid just over $8 million in gaming taxes. This was a bit lower than last year’s $8.7 million. $12.5 million in wagering taxes and development agreements were paid by the operators to Detroit.
Additional Details of the Detroit Gaming Market
For September, MGM Grand Detroit held the market share at 48%. MotorCity followed close behind with 31% and Hollywood Casino at Greektown came in at 21%. This is the usual setup and each casino seems to have found its place in the market with little movement up or down revenue wise.
For the third quarter, revenues were down as well when compared to the same time period in 2021. Around 7% less was earned via the three casinos. Sports betting saw a more significant drop, falling by almost 25% from last year. On a positive note, the market was up over 56% when compared to August 2022.
The three casinos saw a total handle of over $18 million. The casinos paid out just under $99,000 in sports betting taxes to Michigan and just over $120,000 to Detroit for September. Any revenues earned from online gambling are reported separately and were not included in this report.
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