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




Between COVID and the legalization of Michigan 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.

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