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Red Rake Gaming Secures Provisional License in Michigan to Expand US Presence
Detroit Reports $101.4m Revenue Increase for October
November 12, 2020 Alex Hoffmann
It seems that the midwestern state of Michigan and its largest city Detroit have achieved commercial success in October after reporting a revenue boost of $101.4 million at three popular gaming venues.
The numbers also include a whopping $7.6 million raise from sports betting, and the Michigan Gaming Control Board has even approved full-scale renewal of each operator’s casino license for the 2021.
A Good Sign for Detroitans
As reported, the monetary value of “free-play incentives” wagered by players was 72.7% higher than $4.4m in September, which is the first full month of regulated sports wagering in the state.
As is known, retail sports betting went live in Michigan on March 11th, but ed casino properties were unfortunately forced to close in a matter of days. The state had finally reopened on August 5th, when governer Gretchen Whitmer gave green-light to the city’s gambling establishments to welcome back guests at the greatly reduced capacity.
Among the highlighted venues are MGM Grand Detroit, which retained a higher position in the sports betting vertical with $3.7 million in adjusted gross receipts. Following this successful branch of America’s leading hospitality and entertainment company is MotorCity Casino with $2.2 million and the Greektown Casino with $1.7 million.
Equally important, each property paid state taxes on retail sports betting during October, ranging some $287,166 as well as $350,980 in taxes to the City of Detroit. On a side note, the Control Board even published daily fantasy sports figures for the month, introducing $3 million in adjusted revenue with approved operators and $253,449 in tax.
Furthermore, table games and slots across the three land-based casinos have also contributed to the revenue, amounting approximately $93.8 million. However, this result is 18.9% lower than in October last year, but 6.7% higher than September 2020.
Lastly, MGM Grand Detroit took the leading place in this sector with $37.8 million in revenue, while MotorCity follows with $36.3 million and Greektown stands at minor $19.7 million.
License Renewal
Thanks to the previously indicated financial results of MGM Grand Detroit, MotorCity Casino and Greektown, the Control Board has officially approved the extension of licenses for each single venue.
The board unanimously voted in favour of the approvals, although one member was absent during ballot. By extending their permits to provide sports betting and other gambling services to Detroitans, all three properties will be able to run their commercial casinos for at least another 12 months. For the record, Michigan casino licenses are renewed annually for a fee of $25,000.
Based on this revenue, the city’s leading casinos paid $7.6 million in taxes to the State of Michigan. In addition, the venues had to pay up $11.2 million in wagering taxes and development agreement payments.
Another interesting fact about these financial costs is that table games and slots accumulated $550 million since the beginning of 2020 through September, which is down by 54.2% from last year’s $1.2 billion.
In relation to the current market share, MGM Grand Detroit leads with 41% ahead of MotorCity and Greektown, which fall behind with 38% and 21% respectively.
Source:
“Detroit commercial casinos post $101.4m in revenue for October”, Robert Fletcher, igamingbusiness.com, November 11th, 2020.
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I hope that the pandemic in the States and the rest of the world will soon be over so that we can once again freely move around and check out all the goodies that the industry has prepared for us in the meantime. These results sound encouraging.