MGCB Reports Revenue Drop For Detroit Casinos In 2020

The Michigan Gaming Control Board has announced that revenue fell 57.3 percent year-on-year during 2020 across Detroit’s three commercial casinos, with the state regulator announcing a final figure of $639 million, compared to the record $1.45 billion production in 2019.

Major impact of COVID-19

Noting the major effect of COVID-19 on operations, table games and slots generated 97 percent of revenue at $620.4 million, while retail sports betting, which started in March, generated 3 percent at $18.3 million.

The casinos were closed from March 16 to August 4 and from November 18 to December 22 due to public health issues, and are functioning at reduced capacity between those dates under an outbreak order provided by the Department of Health and Human Services of Michigan.

Table games and slots sales decrease

All three Detroit gaming establishments saw table games and slots sales decrease throughout the year, breaking down the figures by vertical, with MGM Grand Detroit leading the way with a reduction of 58.8 percent to $257.1 m and a market share of 41 percent.

The $222.7m MotorCity Casino, a decline of 54.9 percent, reflects a 36 percent market share in 2020, with Greektown Casino claiming the remaining 23 percent to $140.6m via a 58.3 percent drop.

Compared with $117.8m a year ago, the trio paid $50.3m in wagering taxes to the state of Michigan, as well as $73.8m in wagering taxes and development agreement fees to the city of Detroit.

The three casinos posted combined adjusted gross receipts of $18.3m on a retail sports betting basis, as well as paying the state $690,865 in taxes and the city $844,391.

With $8.2 million, the BetMGM sportsbook led the way, followed by MotorCity and its $6 million FanDuel sports betting partner, and $4.1 million from Greektown Casino and Penn Sports Interactive.

A December performance update was also issued by the MGCB, with the three casinos posting $23.93m in monthly aggregate revenue in December while operating for nine days at reduced capacity due to health concerns regarding COVID-19. Table games and slots generated $22.05m, an 82.8 percent decline, while $1.88m was generated by retail sports betting.

In recent days, it has been widely stated that the online casino gaming and sports betting debut is days away from being launched within the state, following the MGCB in December approving provisional licenses for 15 platform providers.