The kickoff of 2024 has not been kind to Detroit’s casino sector, as January figures reveal a notable 8.8% year-on-year revenue decline. The total revenue amassed from table games and slots amounted to a staggering $93.9 million, with retail sports betting contributing an additional $500,221. Nevertheless, these numbers demonstrated a downward trend, as they also saw an 18.8% decrease from December’s revenue reports, casting a shadow over the industry’s financial health.
Breaking down the market share, MGM Grand Detroit emerged as the leader with a dominant 48% slice of the pie. MotorCity Casino Hotel and Hollywood Casino at Greektown trailed with 30% and 22% respectively. Yet, even market leadership couldn’t shield MGM from the industry-wide revenue slump; revenue from table games and slots specifically reduced by 9.1% relative to January of the preceding year, and it also experienced a 15.7% reduction from December 2023.
Scrutinizing the individual performances, MGM’s revenue dived by 11.3% when compared to January 2023 figures. MotorCity saw their revenue reaching $27.1 million, marking a 10.4% decrease, while Hollywood Casino at Greektown witnessed a relatively modest 2.0% dip, anchoring their revenue at $22.2 million. These declines were further accentuated when assessing the month-on-month financial trajectory. MGM’s gaming revenue plummeted by a concerning 11.8%, and MotorCity’s gaming revenue plummeted by an alarming 21.9%, while Hollywood Casino at Greektown’s revenue fell by 14.9%.
January’s revenues ushered Michigan’s state coffers a total of $7.6 million in taxes, indicating a descent by 9.5% from the $8.4 million paid in January 2023. The City of Detroit, despite the overall downturn, received $11.2 million in wagering taxes and development agreement payments from the casinos.
The state’s sports betting sector also struggled to maintain its grip, as the total handle for retail sports wagering reached just $24.2 million for January, manifesting a 20.4% downfall from the previous month. Gross sports betting receipts managed to clock in at $520,988.
While the year-on-year qualified adjusted gross receipts (QAGR) in retail sports betting exhibited a $389,197 increase, a stark contrast was noticed against the $4.3 million reduction when compared to December 2023. This QAGR setback was witnessed across all three casinos. MotorCity managed to generate $1.1 million, with MGM trailing at $403,926, and Hollywood Casino at Greektown unfortunately reported a loss, accounting for a negative $1 million in the category.
Casinos in Detroit navigated through this decline by paying a total of $58,073 in gaming taxes for sports betting to the state of Michigan—remarkably, this tax sum represented a substantial increase, being $53,876 higher than the amount paid in January of the previous year. Similarly, the casinos also disbursed $70,978 in wagering taxes to the City of Detroit.
In a broader perspective on the gaming industry, the report highlighted fantasy contest operators’ performances in December 2023. With total adjusted revenues reported at $484,140, they contributed $40,668 in taxes.
As the Detroit casino industry navigates through the choppy waters of the early 2024 fiscal landscape, stakeholders, bettors, and municipal budgets alike await future months with cautious optimism for a rebound. The current revenue decline paints a challenging picture but also serves as an impetus for the industry to galvanize innovation and customer attraction strategies, in hopes of recouping numbers and returning to the erstwhile trajectory of growth.
