Detroit Casinos Struggling To Get Back To Pre-COVID, Pre-Online Numbers

Revenue is down at the three casinos, with the virus and online casinos the likely explanation
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Between COVID and the legalization of online casinos, Detroit’s trio of brick-and-mortar operations are findings things aren’t quite the way they used to be.

In November, the three — MGM Grand Casino, MotorCity Casino Hotel, and Greektown Casino-Hotel — took in $108.19 million in monthly aggregate revenue, with $103.9 million of that revenue coming from table games and slots, the Michigan Gaming Control Board reported Tuesday morning. The remaining $4.3 million came courtesy of sports betting.

But a comparison look at November 2019 (since in November 2020, the casinos were forced to close from Nov. 18-30 due to COVID) shows the casinos made $124.2 million from table games and slots that month. Their revenue from casino games side this November was 17% less. Additionally, revenue in November was 6.8% lower than October’s numbers

A big question going forward — especially after COVID passes or goes endemic — is the extent they can do better now that online casinos have been legalized.

On to the rest of the numbers …

Market share and more

Total market share for November among the three casinos broke down as follows: MGM 46%; MotorCity, 32%; and Greektown 22%.

For the month, the three Detroit casinos paid $8.4 million in gaming taxes to the state of Michigan and another $13 million to the city of Detroit in wagering taxes and development agreement payments.

On the sports betting side, the total handle was $26.7 million and gross receipts came in at $4.6 million, for a remarkable 17.6% hold.

The gross receipts breakdown by casino on the sports betting side was Greektown, with $1.8 million; MotorCity, with $1.5 million; and MGM, at $1 million.

The state received $163,625 in retail sports betting taxes from the three Detroit casinos, and the city took in $199,986 in retail sports betting taxes.

Photo: Shutterstock

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