Detroit Casino Revenue Shrinks 4% in AugustSeptember 15, 2017 11:14 am
The Michigan Gaming Control Board has released its latest gambling results, revealing that Detroit’s three casinos generated 3.8% less revenue at $111.5 million in August compared to the same month in 2016. The midwestern state subsequently collected $9 million in gambling taxes for the month, down by 4% versus last August, which was then funneled towards a range of funds, including those supporting education and property tax relief.
In August, the only casino to report year-on-year growth was the MotorCity Casino, whose revenues increased by 1.5% to $38 million. On the flip side, MGM saw its revenue contract by 6% to $47.9 million, while Greektown Casino was also down by 5% to $25 million.
Overall, the City’s casino revenue was down by 4% for the whole of the summer season, although they are still collectively up by more than 1% for the first eight months of the year.
In July of 2013, Detroit entered bankruptcy with an estimated debt of between $18–20 billion, but by December of 2014, following much wrangling, it had its adjustment plan accepted by creditors, thus allowing it to exit bankruptcy protection and regain control of its finances.
In the meantime, the City’s casinos have proved to be an invaluable source of income for Detroit, and regularly account for more than 17% of its total revenue. Recently, the city has also been exploring new potential income streams to help boost its coffers, with one of the ideas currently considered being the legalisation of online gambling.
Earlier this week, Michigan State Representative Brandt Iden (photo) subsequently presented his iGambling bill called H4926, with the piece of legislation complementing Senate Bill 203, which Senator Mike Kowall introduced earlier this year. Amongst the suggestions proposed in the Michigan internet gambling bill is the levying of a 15% tax rate on revenue, a massive $200,000 license fee that would be valid for five years, and the ability for Michigan to form “interstate compacts” with other jurisdictions already offering legalised online poker.
Speaking out in favor of online gambling regulation, former state attorney general Mike Cox recently praised the important role collaboration with the regulated states of Delaware, Nevada and New Jersey had in helping Michigan draft its own bills, and as he explains:
“Thankfully for us, in the state of Michigan, they’ve worked out a lot of the kinks. These bills are a result of talking with their regulators and using those things that work well, incorporating them for the benefit of Michigan citizens and complementary with Michigan law.”