Detroit Casinos Post Lowest Revenue in 18 Years

Detroit’s casino sector started 2024 on a subdued note, with January revenues hitting the lowest in over 18 years. The Michigan Gaming Control Board (MGCB) reported that the combined gaming revenue for the city’s three casinos totaled $93.9 million, not including the $521,000 from sports betting. This figure represents a 9.1% decline from January 2023 and a 15.7% drop from December 2023.

MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown comprise Detroit’s casino market. They collectively marked a significant decline in gaming revenue compared to the same period last year, with MGM Grand leading the decline by 11.3%, followed closely by MotorCity with a 10.4% downturn.

Note

Michigan’s land-based casinos are a vital part of the state’s entertainment and tourism industry. While fluctuations in revenue are not uncommon, a consistent downturn might prompt these establishments to re-evaluate their offerings in the coming months.

The state’s tax revenue from these establishments for January stood at just over $7.6 million, down from the previous year’s $8.4 million. Detroit’s wagering taxes and development agreement payments from the casinos also saw a decrease, totaling around $11.2 million.

On a brighter note, Detroit’s sportsbooks experienced a surge in activity, with a 58.3% year-over-year increase in the handle for January 2024. The total retail sports betting handle was $24.2 million, marking the first time since early 2022 that back-to-back months surpassed the $50 million mark. Despite the overall gaming revenue downturn, MotorCity Casino’s sportsbook, operated by FanDuel, exceeded $1 million in revenue for the third consecutive month, a feat not achieved since late 2020.