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Detroit commercial casinos post $101.4m in revenue for October

News

Detroit’s three commercial casinos reported $101.4m in revenue for October, including $7.6m from sports betting, while the Michigan Gaming Control Board has approved the renewal of each operator’s casino license for the next year.

Qualified adjusted gross receipts for sports wagering – gross receipts minus the monetary value of free-play incentives provided to and wagered by players – was 72.7% higher than $4.4m in September, the first full month of regulated sports wagering in the state.

Retail sports betting went live in Michigan on March 11, but properties were forced to close a matter of days later, after the state went into lockdown as a result of the novel coronavirus (Covid-19) and did not reopen until August 5.

MGM Grand Detroit retained top spot in the sports betting market with $3.7m in adjusted gross receipts, ahead of MotorCity Casino on $2.2m and the Greektown Casino with $1.7m.

The three properties paid $287,166 in state taxes on retail sports betting during October, as well as $350,980 in taxes to the City of Detroit.

The Control Board also published fantasy sports figures for the month, with approved operators generating $3m in adjusted revenue and paying $253,449 in tax.

Looking at table games and slots across the three casinos, revenue amounted to $93.8m, which was 18.9% lower than in October last year, but 6.7% higher than September this year, as the casino continue to face Covid-19 restrictions.

MGM Grand Detroit also led this section of the market with $37.8m in revenue, followed by MotorCity with $36.3m and Greektown on $19.7m.

The casinos paid $7.6m in taxes to the State of Michigan based on this revenue, as well as $11.2m in wagering taxes and development agreement payments to the City of Detroit.

For the year-to-date, through to the end of September, table games and slots revenue stood at $550m, down 54.2% from $1.2bn last year.

In terms of market share, MGM Grand Detroit held 41% of the state’s market in October, with MotorCity not far behind on 38% and then Greektown with 21%.

Meanwhile, the Control Board has approved the extension of casino licenses for the MGM Grand Detroit, MotorCity Casino and Greektown Casino.

The board voted 3-0 in favour of the approvals, with one member absent from the vote, meaning the three properties will be able to operate their commercial casinos for at least the next 12 months.

Michigan casino licenses can be renewed annually for a fee of $25,000.