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Detroit casino revenue decline widens to 65.0%

News

The year-on-year decline in revenue for Detroit’s three commercial casinos has widened to 65.0% as of July 31, the final full month the venues will be closed. 

The latest figures for the Michigan Gaming Control Board show that by July 31 2019, the MGM Grand Detroit, MotorCity Casino and Greektown Casino generated revenue of $854.4m. 

However, with venues closed since March 16 as a result of novel coronavirus (Covid-19), the properties have not reported any revenue since that date. Their year-to-date total therefore stands at $299.2m.

Their tax contribution for the year stands at $24.2m, a $45m decline from last year’s $69.2m total for the end of July.

The casinos were permitted to reopen from August 5, though are subject to stringent social distancing measures. Each venue is limited to 15% of their fire code capacity, with masks on the casino floor mandatory and smoking prohibited. 

Poker rooms will remain closed, with table games limited to three players aside from roulette and baccarat, which can accept four, and craps, for which six players will be permitted.

The only legal product to report revenue for July was fantasy sports, for which revenue rose 48.3% to $488,050. Licensees paid taxes of $40,996 to the state in the month. 

For 2020 to date, fantasy contest revenue stands at $4.1m, and tax take from the vertical at $340,424.

Earlier this month, a new report from the American Gaming Association (AGA) found that Michigan’s 27 combined commercial and tribal casinos have an annual economic impact of $6.3bn for the state.