Detroit casinos experiencing lull in wake of September revenue results

Article by : Charles Perrin Oct 31, 2023

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Detroit casinos appear to be experiencing a lull if September’s revenue results are anything to go by.

The most recent financial figures published by the Michigan Gaming Control Board (MGCB) showed the biggest casino players amassed a total of $101.6million in revenue.

However, compared to August of this year ($104.9m), gaming revenues have dropped by 3.2%, and they are down by 1.7% compared to September 2022 ($103.4m).

Of the reported total for September revenues, $99.9m of this emanated from table games and slots, and this represented a sharp decline of 4.4% compared to August of this year.

Moreover, the hot nine-month streak of $100m+ monthly revenues for table games and slots came to a grinding halt.

One of the contributing factors for the diminishing returns could be the state-wide casino strike that was called by the Detroit Casino Council (DCC) during the summer.

Workers have been seeking better wages to keep up with inflation, and they are also clamoring for better healthcare and retirement benefits.

A strike was held earlier in October following a breakdown in talks, with thousands walking out and heading straight to the picket line.

It is thought that the strike may well have hit revenues hard, with MGM Grand Detroit likely to have hemorrhaged as much as $1.7m.

That said, as far as MGM is concerned, they remain the industry leader with a market share of 44%, and they contributed close to $45m in revenue for September.

Meanwhile, MotorCity Casino Hotel placed second with a market share of 31%, but they endured a 1% drop in revenues year-on-year.

Intriguingly, only Hollywood Casino at Greektown has enjoyed year-on-year growth, and revenues soared by over 15% in September compared to the same corresponding period last year.

However, online casino gambling seems to be the main pull in terms of gaming revenue in Detroit, with gross receipts up by 29.3% to $166.4m.

Naturally, these are testing times for the Detroit casino industry, but operators will be eager to finish the year on a high.