Detroit Casino Revenue Down 3% To $103m In SeptemberOctober 17, 2014 12:55 pm
The Michigan Gaming Control Board has released its casino figures for September, revealing a 3% decline in gaming revenue to $103.1 million compared to $106.3 million generated in the same month last year. In addition, September’s revenues were 8.5% lower than the $112.7 million collected by the state’s three casinos in August.
A total of $8.4 million in gaming taxes was then added to Detroit’s finances, and while the sum isn’t a huge amount, it is nonetheless an important source of income for the bankrupt northern state which declared bankruptcy on July 19th, 2013. In fact, last year Detroit even declared that taxes collected from its casinos industry amounted to “30 percent of the city’s total available cash on hand.”
Breaking September’s results down further, MGM Grand Detroit reported a 4.4% fall in revenues to $43.2 million, from the $45.3 million taken in the same month last year; while MotorCity Casino Hotel saw revenue drop by 6.8% to $33.3 million from $35.7 million in 2013; and Greektown Casino-Hotel noted a slight uptick in business in September with revenues rising by 4.7% to $26.6 million, from $25.4 million in the same month last year.
In September, MGM Grand subsequently enjoyed a 42% share of Detroit’s casino market, followed by MotorCity with a 32% share, and Greektown with 26%.
Back in 2012, Detroit casinos generated $1.42 billion in revenues, 0.5% lower than the previous year and only the second time the state of Michigan had posted a revenue decline since 2001. By 2013, however, gaming revenue had fallen by a further 4.7% to $1.35 billion, and so far for the first nine months of 2014 total revenue are around $994.5 million compared with $1.02 billion over the same period in 2013.
In recent years, Detroit’s casino industry has suffered from increased competition from neighbouring states such as Ohio, which now has four casinos. Saturation in the market has also seen the industry as a whole suffer, and included amongst the US states posting revenue declines of late are Illinois, Indiana, Iowa, Nevada, Pennsylvania, Missouri, Connecticut, Atlantic City and Ohio.