Detroit Casinos Experience 8.8% Revenue Drop in January
Date: 2024-02-15 Author: Dima Zakharov Categories: CASINO
Detroit Casinos Revenue Decline in January
Detroit, Michigan's trio of casinos encountered a revenue downturn in January, marking a notable 8.8% decrease compared to the same period last year. The total revenue recorded stood at $94.4 million, a significant dip from the previous year's figures. Let's delve into the details of this decline and its impact on the market.
Dip in Table Games and Slots Revenue
The majority of the revenue, totaling $93.9 million, was derived from table games and slots, with an additional $500,221 generated from retail sports betting. However, this still represented a drop of 9.1% in table games and slots revenue compared to January 2023, and a substantial 15.7% decrease from the preceding month, December 2023.
Market Share Distribution
MGM retained the largest market share in January, amounting to 48%, followed by MotorCity with 30%, and Hollywood Casino at Greektown with 22%. Despite this distribution, all three establishments experienced a decline in revenue, indicating broader challenges within the sector.
Impact on Gaming Revenue
Gaming revenue at individual casinos also witnessed a downward trend. MGM experienced an 11.3% decrease, while MotorCity saw a dip of 10.4% to $27.1 million. Hollywood Casino at Greektown recorded a more modest decline of 2.0% to $22.2 million.
Sports Betting Handle Decline
Retail sports betting handle for the month amounted to $24.2 million, reflecting a decline of 20.4% from the previous month. Despite some positive year-on-year comparisons, the overall trend remained negative, with gross receipts also showing a decrease compared to December 2023.
Tax Implications
The decline in revenue also translated into reduced tax contributions. In January 2024, the casinos paid $7.6 million in taxes to the state of Michigan, down 9.5% from the previous year. Additionally, they contributed $11.2 million in wagering taxes and development agreement payments to the City of Detroit.
Looking Ahead
The January report underscores ongoing challenges in Detroit's casino industry, particularly in the face of declining revenues and tax contributions. As the market navigates these obstacles, stakeholders will be closely monitoring future developments to gauge the sector's resilience and potential for recovery.
