Detroit Casinos Set To Lose $67m In Sales

This week the Department of Health and Human Services of Michigan released an emergency order enforcing the three-week closure of its casinos in the state. As COVID-19 cases hit an all-time high there the decision was made.

The state’s commercial casinos include the MGM Grand, MotorCity Casino Hotel, and Greektown Casino-Hotel, all located in Detroit. During the three-week shutdown, all three locations would lose $67m in sales, based on estimates from the affiliate website.

Detroit casinos gained $101.4m in revenue in October amid a 15 percent room constraint. Based on that number, the three-week closure plans for Michigan’s commercial casinos to lose revenue of $67 million. The forecast involves $5m in lost revenue from sports betting, based on $7.6m in sportsbook earnings at the venues in October.

In terms of the possible effects of Michigan’s online sports betting and casino gaming, MichiganSharp noted that state regulators were hopeful of introducing statewide online sports betting in November. But the launch could be pushed back to December, or even early 2021, by recent snags in the regulation process.

In states like New Jersey and Pennsylvania, online sports betting and casinos are starting to boom. This summer, both states realised record revenue numbers for both mobile sports betting and casinos.

In both states, mobile wagering accounts for more than 80 percent of total sports betting revenue. If that 80 percent measure is extended to the three Detroit casinos, the affiliate said, Michigan’s commercial retail sportsbooks expect to lose out on $30 million in monthly revenues during the fall sports season, including $2.5 million in Michigan’s missed tax revenue.

Geoff Fisk, analyst for MichiganSharp said: “The sports betting boom across the US comes from the popularity of mobile wagering. We likely won’t see any states where retail sportsbook revenue comes anywhere close to what mobile wagering can produce.”