Detroit Casinos Hit Record $1.4 Billion 2011December 28, 2011 12:49 pm
The city of Detroit in Michigan may be in the grip of one of its worst financial crisis, but one industry that is bucking the trend is its casinos which are now on track to reach a new annual revenue high of $1.4 billion by the end of 2011.
The Michigan Gaming Control Board (“MGCB”) November revenue figures revealed a 3.3% rise in their gambling revenues compared to the same month last year, with MGM Grand up by 2.7% to $49 million; MotorCity up by 1.5% to $37.7 million; and Greektown up 7% to $28.4 million.
Breaking the figure down further, MGM Grand has generated $547.4 million in revenue so far this year, while MotorCity accounts for $431.5 million and Greektown $321.7 million.
However, Greektown’s annual revenue is down by 0.9% compared to 2010, most likely due to the $18 million refurbishing currently taking place, which resulted in a $7.2 million net loss for the casino in the third-quarter. Nevertheless, as CEO Michael Puggi explains:
“These improvements, despite their short-term impact, are critical to the successful implementation of our long-term strategic plan.”
Back in 1996, Detroit’s three casinos began operating and by 2006, were generating around $1.3 billion in annual revenues. They have also helped provide a valuable source of income for the beleaguered city, whom it has been reported, could run out of money by April, 2012, due to diminishing taxes, increasing benefits and pension obligations.
In total, Detroit’s three casinos contribute over $100 million each year in state taxes and a further $170 million in taxes to Detroit.