Michigan Claims Casino Revenue Record On Gain Of Less Than 1 Percent

The Detroit casinos had a record year, but revenues grew only incrementally. Fortunately, sports betting and online gambling are coming.

The Michigan Gaming Control Board reported Tuesday that the three casinos in Detroit reported adjusted gross gaming win of $1.45 billion in 2019.

It’s about $10 mm more than the $1.44 billion in 2018, the regulator said. It’s a new record, the state boasted, but revenue only grew about 0.7% over the previous record.

The third best year ever was 2011’s $1.42 billion.

Around 80% of the revenue comes from slots, with the rest coming from table games such as blackjack.

Casino performances

Both MGM Grand Detroit and MotorCity Casino had their best years ever respectively.

MGM Grand Detroit reported $623.5 mm in 2019 revenue, compared with $619.2 mm in 2018.

MotorCity’s $493.6 mm also beat its former record of $489.7 mm set in 2018.

Greektown Casino reported $337.2 million in 2019 AGR, off from its record of $352.8 mm  in 2011, but its revenue was up slightly last year compared to 2018.

As for market shares, the MGCB reported that MGM Grand Detroit had 43% of the market, with MotorCity and Greektown controlling 34% and 23%, respectively.

The casinos paid $116.9 mm in state taxes in 2019, according to the MGCB. The properties also paid $182.9 mm to the City of Detroit.

Online gaming expansion on the horizon

In December, Michigan Gov. Gretchen Whitmer signed gambling expansion legislation that will bring online/mobile and retail sports wagering to the Detroit casinos, as well as the 23 tribal casinos. Additionally, online casino legislation was approved.

Michigan has the potential to see hundreds of millions of dollars of additional gaming win thanks to the expansion, with little to no cannibalization expected.

A state fiscal note anticipated an annual sports betting market of about $240 mm.

New Jersey’s online casino market was worth more than $480 mm in 2019, a figure that Michigan could one day approach as well. New Jersey began online casino gambling in 2013.

Editorial credit: Byelikova Oksana / Shutterstock.com


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