Detroit Casino Revenues Fall 1.2% To $1.33bn In 2014January 14, 2015 12:44 pm
Ending a disappointing year on a positive note, Detroit reported a 10.3% increase in gambling revenues to $118.1 million for December, with all three of the city’s casinos reporting year-over-year increases for the month. Leading the way was Greektown up by 12% to $28.4 million, followed by MGM up 11.5% to $50.1 million, and MotorCity up 7.6% to $39.6 million. Helping to explain some of the gains is the recent drop in gas prices, which has translated into more disposable income for consumers, as well as improved weather in December, and a Christmas holidays which fell on Thursdays.
“I bet you a lot of people had Friday after Christmas off. I think a lot of people took advantage of the longer weekends,” commented Ohio-based gaming consultant Jeffrey Compton.
Nevertheless, December’s gains were not enough to off-set an overall 1.2% drop in revenues to $1.33 billion in 2014, marking three year’s of shrinking revenues for Detroit. From that tally, slot machines accounted for 83% of total revenues in 2014, or $1.1 billion, while table games accounted for the remaining 17%, or $227 million. Breaking the figures down further, MotorCity reported the biggest drop in revenues, down 2.1% to $445 million, followed by MGM Grand Detroit down 1% to $561.1 million, and Greektown down 0.5% to $326.7 million.
In spite of falling revenues, however, Michigan Gaming Control Board executive director Richard Kalm, took comfort in the fact the drop was lower than had initially been anticipated, explaining:
“We expected 2.5% to 3% (decline) for the year. The 1.2% is certainly manageable.”
Detroit relies heavily on the taxes collected from its casino to fund essential services such as the police and fire department, as well as “programs that are designed to contribute to the improvement of the quality of life in the city.” In 2014, the city then received $170 million in gambling tax revenues, equivalent to around 16% of Detroit’s total revenues.
Annual Detroit Gambling Revenues:
2009: $1.33 billion
2010: $1.37 billion
2011: $1.42 billion
2012: $1.42 billion
2013: $1.34 billion
2014: $1.33 billion