Detroit Casinos See Betting Decline, Gaming Revenue Soar
Detroit's three casinos reported slight increase in revenue for January despite the sudden drop in revenue within their sports betting segment
The gambling regulator in the state, the Michigan Gaming Control Board (MGCB), announced that the three casinos in Detroit reported a total of $103.5 million in monthly aggregate revenue last month. This result, when compared to the $100.9 million reported for the corresponding period in 2022 marked a slight increase of less than 3%.
Further details released by the MGCB reveal that the revenue from table games and slots last month increased by 4.4% when compared to January 2022. However, a month-over-month comparison to December 2022 showed that table games and slots revenue in January dipped by 4.5%.
Sports Betting Revenue Plummets
A breakdown of the $103.5 million in revenue for January reveals that retail sports betting produced only $111,023, while table games and slots generated $103.4 million in revenue.
The Board revealed that qualified adjusted gross receipts (QAGR) for retail sports betting last month plummeted by 94.3% or $1.8 million below the January 2022 results. Moreover, a comparison to December 2022 also shows a decrease, with QAGR from retail sports betting reported by the three casinos down by $1.5 million or 93.2%.
The total sports betting handle in January was $15.3 million, while a breakdown of QAGR per property showed losses for two operators. Motor City Casino was the only casino that reported positive QAGR from sports betting last month, hitting $236,503. On the other hand, both Hollywood Casino at Greektown and MGM reported losses from this segment of $62,755 and $62,725 respectively.
Gaming Revenue Increases
Despite the dip in the sports betting segment, the three casinos in Detroit posted an increase in their January gaming revenue. Hollywood Casino posted an 11.9% increase in its gaming revenue to $22.9 million last month when compared to the same period in 2022. Additionally, MGM reported a 3.2% increase in gaming revenue to $50.2 million last month, while Motor City Casino observed a 1.3% increase in gaming revenue to $30.3 million when compared to January 2022.
Keeping in mind the gaming revenue results, the trio paid a total of $8.4 million in taxes to Michigan. This result was in line with the $8 million paid in taxes for the same period the prior year. Revenue market share data released by the MGCB revealed that MGM held 48% of the share in January, while Motor City and Hollywood Casino were responsible for 30% and 22% respectively.
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