Commercial Casinos in Detroit Set New Record By Collecting $1.45 Billion in Revenue During 2019

Commercial casinos in Detroit, Michigan, have publicly declared that they have collected $1.45 billion in adjusted gross revenue during the period of January 1st – December 31st 2019.

MGM Grand Detroit, MotorCity Casino and Greektown Casino have amassed a turnover which is a $10 million (0.7%) improvement over the year prior.

The Pecking Order

The first two casinos mentioned above have both set record performances…

…in biggest yearly GGR since their opening in 1999.

For MGM Grand Detroit, the revenue was $623.5 million, which is a 0.7% increase over 2018’s $619.2 million. Their market share is 43%.

Coming up at number two was MotorCity, whose market share of 34% translates to a 0.8% annual rise to $493.6m in income in 2019.

Finally, Greektown Casino enjoyed a 0.6% year-on-year increase in GGR to $337.2m – not quite up there with their 2011’s record of $352.8 million. Their market share is 23%.

What About the Taxes?

The collective gaming taxes paid by these three casinos amounted to 4117.8 million, which is a slight increase over 2018’s $117m. They also made $184.2m in wagering taxes, as well as development payments to the city of Detroit.

In December, Michigan Governor, Gretchen Whitmer, ratified the bills to legalize sports betting and online gaming which should be set in motion this year.

Much Was Made Legal

She signed the HB 4311, according to which Lawful Internet Gaming Act will be instated. It permits Michigan Gaming Control Board to hand out new licenses for online and mobile casino games in the state.

She also approved the HB916, allowing Lawful Sports Betting Act, which legalizes sports betting in commercial and tribal casinos, that will be taxed at a 8.4% rate.

Finally, Fantasy Sports Consumer Protection Act (HB4308) was also signed by Whitmer, which creates a legal framework for fantasy sports in Michigan.

The Stars Group and PointsBet Are Already in

PointsBet and The Stars Group have accessed the market of Michigan by g the agreement with native tribes.

The Stars Group ed forces with Little Traverse Bay Bands of Odawa Indians. They will operate the real-money betting, poker and casino in the state. The tribe will receive a share of revenue generated by iGaming.

PointsBet teamed up with Lac Vieux Desert Band of Lake Superior Chippewa Indians with a 20-year agreement according to which they will launch mobile and desktop sports betting.

Source:

“Detroit commercial casinos post record $1.45bm in annual revenue”, igbnorthamerica.com, January 22, 2020.