Michigan casinos in upbeat mood after posting extraordinary June revenue figures

Article by : Charles Perrin Jul 31, 2023

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Michigan is on an upward trajectory in the online casino sphere if its latest revenue figures for June are anything to go by.

Recent reports have suggested that Michigan casinos have virtually outdone themselves again in June by posting gross revenues of $151 million.

Perhaps even more extraordinary is that this represents the fourth consecutive month that Michigan has announced casino revenue figures of at least $150m.

Compared to June of last year, this signals a 24% increase, and it is supposedly the fifth-highest figure of any month in Michigan history. Remember, gambling has only been around in the state for three years, as the state was given the green light in December 2019.

A superb June

The Michigan commercial and tribal operators have combined exceptionally well over the past few months, and official state figures from the Michigan Gaming Contol Board show June gaming receipts totaled $151m, up from the $150.6m revealed in May.

June was a joyous month on the online casino front, and the figure declared puts Michigan on the brink of reaching the $ 1 billion milestone for the calendar year.

Through the first six months of the year, Michigan online casinos have won over $930m from its casino players, and there is a possibility that it could reach the $2bn landmark, let alone break the $1bn barrier one month earlier than in 2022.

Moreover, it was the ninth consecutive month when revenue surpassed the $140m mark, and things show no signs of slowing down anytime soon.

The record figures have offset any concerns about sports betting, which has endured a slump over the past few months.

Overall, June was very impressive, especially considering May’s figures were 18% higher compared to the corresponding period in 2022.

Detroit concerns?

While there has been cause for celebration, and Michigan has been lauded for its robust casino approach, a few concerns could surface.

More specifically, things aren’t looking so delightful for Detroit casino operators, who may want to take a closer look at the revenue figures.

Detroit, Michigan’s largest city with a population of around 640,000, has seen casino revenue figures drop over the past few months at some of the most prominent land-based venues.

Despite starting January with a bang by posting revenue figures of over $50m, things have dropped considerably between April and June. Indeed, for June, the MGM Grand Detroit, for example, posted revenue figures of over $47m.

Perhaps the MGM Grand Detroit might be okay, and when compared to Greektown Casino and Motorcity Casino, for example, it fares well.

Indeed, Motorcity Casino has seen its fortunes fluctuate, although revenue figures rose to just shy of $32.5m for June, while Greektown Casino announced a slight increase to $22.6m for June, trailing in MGM Grand’s wake.

And wagering tax receipts down to just over $12m in Detroit puts a slight dent in the revenue figures.

Maintaining a streak

Of course, maintaining revenue growth of 20% in today’s climate is a daunting challenge and perhaps an unenviable task for online casinos in Michigan, significantly when costs are constantly rising.

Although some worrying remarks have been passed around in the industry concerning the Michigan gaming sphere, this hasn’t necessarily been deflected onto online casinos.

It is also worth noting that the Michigan Gaming Control Board revealed last month they are expecting to receive $ 51 million in funding for 2024. This is all pendant on the budget and a signature from Gov. Gretchen Whitmer. But should the gambling regulator be granted its wish, this could pave the way for a more enriching Michigan casino experience for operators and players alike.

The onus, however, is on casinos to maintain the excellent work and keep heading in an upward direction. Even if the figure doesn’t pass the 20% mark over the next few months, casino operators want to show tangible signs of progress and a healthy return on investment.

Positive outlook

Overall, many positive things are coming out of the Michigan casino scene concerning revenue figures.

There have been severe strides of progress made, and the challenge for casino operators in the state is to maintain and build upon the work they have achieved in the first half of 2023.

Michigan casinos must eliminate all the external noise and focus on providing a quality online experience for all its players.

And if they can do this effectively, then the bumper revenue figures will continue to roll in, and maybe the magical $2bn revenue mark will be within reach.