Detroit Casino Revenue Up in February but Still Lags Behind 2023 Results

Article by : Erik Gibbs Mar 14, 2024

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Following January’s revenue figures reminiscent of pandemic-era lows, Detroit’s trio of retail casinos are likely breathing a collective sigh of relief after experiencing a rebound in gambling revenue figures for February.

As reported by the Michigan Gaming Control Board, the combined revenue from slots, table games and poker amounted to $104.8 million last month, indicating a return to the levels observed at the outset of 2023.

While this reflects a slight decrease of 0.2% compared to February 2023 ($105 million), it marks a notable 11.6% surge from January’s disappointing total of $93.9 million. However, retail sports betting at the casinos declined in February, with just $13.2 million in handle, a substantial 45.4% drop from January’s $24.2 million.

Nonetheless, this figure represents an 8.2% increase from February 2023 ($12.2 million). Despite the uptick in handle, Detroit sportsbooks collectively incurred a loss of $120,142 for the month.

Revenue for each of Detroit’s three major casinos increased significantly in February compared to January. MGM Grand Detroit’s revenue rose to $49.3 million from $44.6 million, while MotorCity Casino’s revenue increased to $31.6 million from $27.1 million.

Similarly, Hollywood Casino at Greektown experienced a bump in revenue to $23.8 million from $22.2 million. This upward trend in revenue across all three establishments suggests a positive turn for the city’s gambling industry in February.

The surge resulted in $8.5 million in state wagering tax revenue and $12.5 million in Detroit wagering tax revenue. While the holiday season may have constrained disposable incomes in January, spending patterns seemed to have reverted to normalcy by February.

Despite February’s improved revenue, Detroit’s trio of casinos still face a considerable challenge in closing the gap compared to the beginning of 2023.

January’s revenue setback created a significant hurdle that will prove challenging to overcome. Despite averaging just under $100 million per month in the first two months of 2024, a figure that surpasses the start of 2022, it falls short of industry expectations.

Before the labor strike, the casinos seemed poised to surpass 2022’s annual revenue, indicating the potential for 2024 to outshine both years.

Comparatively, the average revenue through February in recent years stands at $99,332,243 in 2024, $104,182,420 in 2023, $97,281,588 in 2022, and $86,621,015 in 2021 (with pandemic-induced capacity limits).

Notably, March typically sees the highest revenue totals, with March 2023 reaching $117.8 million and March 2022 hitting $120.9 million. The question now looms: will 2024 sustain this upward trajectory?

During the NFL season, Michigan witnessed a surge in sports betting, fueled partly by the Detroit Lions’ performance.

However, with the conclusion of the NFL playoffs and attention shifting to the Super Bowl, revenue patterns changed. While overall handle remained steady compared to the previous year, both MGM Grand Detroit and MotorCity Casino suffered losses in their sportsbooks, while Hollywood Casino at Greektown saw modest revenue.

The closure of NFL futures markets post-Super Bowl contributed to these losses. As March approaches, Detroit’s sportsbooks are hopeful for increased activity with March Madness betting, aiming to replicate last March’s high wagering figures.