Detroit Casino Revenues Rise 0.9% To $109.9m In June

The Michigan Gaming Control Board has released its casino figures for June, revealing a 0.9% increase in revenues to $109.9 million, compared to the the same month in 2014. Leading the city’s three casinos in terms of growth was MotorCity up 8.8% to $37 million; followed by Greektown up 1% to $25.6 million, while MGM saw its revenues fall by 4.8% to $47.3 million. The state subsequently collected $8.9 million in gambling taxes, slightly higher than the $8.8 million recorded for June 2014.
The latest positive results represent a gradual reversal of Detroit’s declining casino industry which had been trending lower since 2012 due to increased competition from rival states, as well as higher gas prices eating into consumers’ disposable income. Furthermore, Detroit casino revenues are currently higher by 4.8% to $350.3 million for the first six months of 2015 compared to last year, and commenting on the welcome news Lansing-based gaming consultant Jacob Miklojcik explained:
“The economy is doing better and you’ve got more disposable income because of gas prices. That shows up in how people spend their recreational money.”
Breaking the second quarter figures down further, MotorCity Casino Hotel revenues are up by 5.4% to $117.4 million year over year, followed by MGM Grand Detroit up 4.8% to $150.9 million, and Greektown Casino-Hotel up 2% to $82 million. Detroit relies heavily on casino gaming taxes which currently represent around 16% of its total revenues, or roughly $170 million, and since December 2014 when it exited bankruptcy the city has gained full control over this vital source of income. The money is then used to fund a number of essential basic services, including police and anti-gang initiatives, the fire service, economic development programs and “other programs that are designed to contribute to the improvement of the quality of life in the city.”