Detroit Casino Revenues Up 0.7% to $117M in February

The City of Detroit’s three casinos generated revenues of $117 million in February, representing a moderate revenue gain of 0.7% compared to the same month in 2016. Furthermore, the latest figures released by the Michigan Gaming Control Board marks a 4.7% improvement versus January’s result.
Leading the city’s gambling market in terms of growth was the MGM Grand Detroit, whose 4,000 slot machines and 98 table games produced revenues of $48.1 million in February, up by 1.9% on last year’s total. Next, was the MotorCity Casino & Hotel which collected 0.4% more revenues at $40.6 million from its 2,900 slots and 59 table games; while bringing up the rear was Greektown, whose 2,600 slot machines and 60 table games returned revenues of $28.6 million, representing a slight 0.8% year-on-year contraction.
As a result, the MGM accounted for 41% of Detroit’s gambling revenues last month, followed by MotorCity (35%), and then Greektown (24%).
Detroit subsequently collected $9.5 million by way of gambling taxes in February, versus the $9.4 million it received in February of 2016. The three casinos also paid a further $14 million in wagering taxes and development agreement payments.
In 2012, Detroit’s casino market hit a peak of $1.42 billion, but after Ohio opened its first casino that year, gambling revenues started to head south and the following year Detroit’s casino business had dropped to just $1.34 billion. Ohio’s casino market has since expanded to include four land-based venues, which generated a combined $797.94 million in revenues last year, lower by 2% versus 2015’s tally of $812.32 million.
Michigan legalized parimutuel horse racing in 1933, followed by a state lottery in 1972. By 1996, the state also had around 17 tribal casinos operating in the state, which together with the Windsor Casino opening for business in Canada across the Detroit River, motivated the state’s residents to vote for allowing three licensed and privately owned casinos to be constructed in state. These days, the industry provides employment for around 17,000 people, and generates over $720 million in annual local, state and federal taxes.