Detroit Casinos The Life Blood Of The CitySeptember 11, 2013 12:13 pm
The Michigan Gaming Control Board has released its Detroit casino results for August, revealing a 3.5% decline in revenue to $112.9 million compared to the same month in 2012.
Out of Detroit’s three casinos, just the MotorCity Casino reported a modest 1.5% increase in revenue to $38.7 million, while the MGM Grand Detroit declined by 4.8% to $47.4 million and Greektown Casino fell 7.7% to $26.8 million.
In recent decades, Detroit has experienced a major economic and demographic decline and this year filed the biggest municipal bankruptcy case in US history. The Detroit Casino industry, similarly, has also began to show signs of decline, and last year recorded a fall in revenue to for the first time since 2001. Contributing factors to the recent contraction in its gambling market include a sluggish US economy, and increasing competition coming from casinos built in nearby Ohio.
Nevertheless, despite all its problems, Detroit’s casino industry still continues to provide a valuable lifeline for the beleaguered city, with the $1.377 billion in casino revenue generated in 2012-13 contributing $174.5 million in gaming tax revenue for state coffers. Emphasising the importance of this source of income for the city, Detroit emergency manager Kevyn Orr described revenue derived from its gambling industry as a “life or death” issue, explaining:
“The city needs the casino revenue badly..I will say again, every day that we don’t have access to casino revenue, we cannot make the reinvestment in this city to provide for the health, safety and welfare of the citizens, and that’s a true statement.”
Aside from income and property taxes, casino tax revenues generate Detroit’s third largest source of revenue, which it then uses to secure additional financing to help it operate during the bankruptcy process.