Michigan Casinos Slower in August, but Still up Over 2022

Article by : Erik Gibbs Sep 15, 2023

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In the realm of Detroit’s bustling casino scene, the numbers for 2023 continue to tell a story of stability but also a slight drop. According to the latest dispatch from the Michigan Gaming Control Board, Motor City’s gaming trio has held its ground, maintaining a slight edge over last year’s figures.

In August, the three gambling operations collectively amassed $104.6 million in revenue from the lively dance between table games and slot machines. While this represents a minor 2% dip from July’s takings, it’s worth noting that August 2023 stands tall, edging out its 2022 counterpart by a slender 0.1% margin.

The cumulative revenue for these titans now stands at a commendable $853.7 million, marking an overall uptick of 0.8% compared to the same period in 2022 with $847.2 million.

The standout performance of Hollywood Casino at Greektown has indeed caught attention. While two of Detroit’s gaming properties have experienced slight downturns in their 2023 fortunes, Hollywood Casino is making a dazzling comeback.

Over eight months this year, it has clocked in an impressive $194.8 million in revenue, a staggering 14.6% surge from last year’s position with $170 million. In August alone, Hollywood Casino at Greektown contributed $24.4 million to the cause.

This financial prowess, a robust $24.8-million difference year-on-year, is casting a welcome lifeline to offset the modest declines experienced by MGM Grand Detroit and MotorCity Casino.

MGM Grand Detroit, the perennial front-runner in this revenue race, remains in pole position, boasting a substantial $400.7 million for 2023 after tallying $49.6 million in August. MGM Grand’s supremacy endures despite a relatively minor 1.7% drop compared to 2022 with $407.5 million.

While MGM Grand Detroit is one of the casinos suffering a cyberattack, the final reports still point to the operation’s lucrative potential.

Meanwhile, MotorCity Casino, though experiencing a year-to-year dip of 4.7% with $258.2 million in revenue, made a notable stride in August with $30.7 million. Its journey to reclaim lost ground is very much in motion.

These three establishments have also played their part in contributing to the coffers of the state and the city. In August alone, they contributed $8.5 million in state tax revenue and $16.5 million in city wagering tax.

In the sports betting segment, the numbers show a more significant decline. In August, the three casinos generated a collective handle of just over $10 million, yielding $327,291 in revenue.

While the online handle exhibited a 46% decline from its August 2022 counterpart, it did show an encouraging uptick of over $2 million from the preceding month.

However, the stark reality is that sports betting revenue in August plummeted by 87.6% compared to last year, when it reached $2.6 million across the three establishments.

Across the first eight months of 2023, the retail sports betting handle sits at a sobering $99.8 million, a 46.8% drop from its 2022 position ($187.4 million). The revenue side of the sports betting ledger paints an even bleaker picture, with a meagre $3.4 million in 2023—a disheartening 68.4% decrease from the $10.7 million it had amassed by this point in 2022.

Delving into the specifics of August, there’s a flicker of hope for MotorCity Casino, which managed to stay in the black for just the second time in five months at its retail sportsbook.

With $201,435 in earnings out of a $2.8 million handle, the tide may be turning, although it still bears the burden of a year-to-date loss of just under $1 million.

Despite registering the highest handle last month at $4.8 million, Hollywood Casino at Greektown could only convert this into a revenue of $40,588.

MGM Grand Detroit contributed $2.4 million in handling its retail sportsbook, translating to a revenue of $85,269. The sports betting arena remains a perplexing challenge for these gaming giants as they grapple with fluctuating fortunes in this ever-evolving landscape.