Detroit Casino Revenues Up 5% to $131M in MarchApril 14, 2017 12:21 pm
The Michigan Gaming Control Board has released its latest results for Detroit, revealing the City’s three land-based casinos generated revenues of $131.2 million in March, representing a 5% increase compared to the same month in 2015.
Leading Detroit’s casino market last month was MGM Grand Detroit with revenues of $54.2 million, up by 4.5% year-over-year, followed by MotorCity Casino up 3.2% to $45.1 million, and Greektown Casino-Hotel higher by 8.6% to $32 million versus March 2016. As a result, MGM Grand accounted for 41% of the City’s market share in March, followed by MotorCity (35%), and Greektown (24%).
After reaching a peak of $1.42 billion in 2012, Detroit’s casino market declined in 2013 and 2014 before posting a 3.3% increase in 2015, followed by a slight 0.7% rise in 2016. This year has also gotten off to a positive start, too, with January’s revenues higher by 2.7%, February by 0.7%, and now March up by 5%. Consequently, first quarter revenues are currently higher by 2.9% at $360.5 million compared to Q1 of 2016, with gaming taxes collected totalling $29.2 million versus $28.4 million for the same period of last year.
In the meantime, Michigan lawmakers have been exploring the possibility of legalizing online gambling in order to generate an extra source of income for its coffers. State Rep. Robert Kosowski (photo), for instance, has introduced SB 203 to the Senate, with estimates suggesting that a regulated online gaming market could generate revenues of $319 million by 2019, of which $32 million would then be collected by way of tax revenue.
Unfortunately, the bill is already facing stiff resistance, and has even been called “unconstitutional.” As a report on the bill produced by Drew Krogulecki of the Michigan Senate Fiscal Agency, states:
“Under Article 4, Section 41 of the Michigan Constitution, any law enacted after January 1, 2004, that authorizes any form of gambling must be approved by a majority of voters in a statewide election and a majority of electors voting in the township or city where the gambling would take place. Without requiring a statewide vote, the bill would violate this provision.”