Detroit Casinos Post 2023 Results, Highlight a Slight Decrease in Revenue

The Michigan Gaming Control Board (MGCB) has published information about the financial performance of Detroit’s three casinos in 2023. According to the regulator, the properties reported а total monthly aggregate revenue of $116.2 million for December and а total yearly aggregate revenue of $1.237 billion for 2023.

In December, $111.4 million of the total revenue was generated from table games and slots, which continued to be the dominant gambling vertical. Sports betting, meanwhile, brought in $4.8 million in revenue.

MGM had a market share of 44%, followed by MotorCity at 32% and Hollywood Casino at Greektown at 24%. For reference, the three casinos earned $50.6 million, $34.7 million and $26.1 million, respectively. MGM recorded a slight decline of 0.7% but its competitors posted year-on-year increases in revenue.

In total, the three Detroit casinos paid $9 million in gaming taxes to the state, which was $0.2 million more than they did in December 2022. In December, the casinos also submitted $13.8 million in wagering taxes and development agreement payments to the City of Detroit.

The Annual Revenue Declined Slightly

While the December results were somewhat favorable to most of Detroit’s casinos, the Q4 quarterly results were suboptimal for all of them. For reference, MGM’s quarterly revenue declined by 17.7% to $118.6 million. MotorCity, on the other hand, experienced an 11.6% year-on-year decline, reporting quarterly revenue of $84.4 million. Finally, Hollywood Casino at Greektown reported $66.2 million in revenue, which represents a 4.7% year-on-year decline.

In total, the three casinos paid $21.8 million in gaming taxes for the period.

As mentioned, the casinos’ total annual revenue was $1.237 billion, representing a slight 3.1% year-on-year decrease. Most of this (80%) was generated by slot games. Another 19% is attributable to the casinos’ table game operations, the MGCB added. Retail sports betting lagged behind with a market share of 1%.

Speaking of market share, MGM continued to dominate Detroit, occupying 46% of the market share for 2023. MotorCity and Hollywood Casino at Greektown’s shares were 31% and 23% respectively.

In 2023, the three casinos paid $99 million in wagering taxes for slots and table games and $528,314 in wagering taxes for retail sports betting.

Finally, the MGCB addressed fantasy contest, saying that the vertical reported total adjusted revenues of $21.3 million for the period from January 1 through November 30, 2023. Fantasy contests also generated $1.8 million in taxes.