In the latest report from the Michigan Gaming Control Board (MGCB), Detroit's casinos experienced a dip in fortunes last month, earning $98 million.
This marks the first time in over a year that monthly revenue has fallen below the $100 million mark.
Compared to the previous month, revenue slid by 4.2%, and when looking at the same time last year, there’s a notable 6.5% decrease. It’s also surprising that this happened because the casino industry in The Wolverine State just experienced a banner year.
Detroit Casinos Experience Second Consecutive Slow Start
Earlier in 2024, casinos started the year on a shaky note, raking in only $93.9 million in January—a cause for concern in the retail gaming sector. However, February saw a rebound, highlighting the unpredictable nature of casino earnings.
Leading the pack, MGM Grand Detroit claimed 47% of the market share, while MotorCity followed with 29%, and Hollywood Casino at Greektown rounded out the trio with 24%.
MGM Grand Detroit recently paid out thelargest jackpot in its history since opening in 1999.
Despite Decrease, Michigan Still Cashing In on State Gaming Taxes
In addition to their earnings, these casinos have made significant tax contributions. They paid $7.9 million in state gaming taxes and $11.7 million in wagering taxes, alongside development agreement payments to the City of Detroit. Despite these contributions, both earnings and tax payments decreased compared to February of the previous year.
This, while a group of senators is considering two recently introduced bills that would propose small increases to the state’s online casino and online sports betting tax rates.
Experts Expect Casinos in Michigan To Bounce Back
Looking ahead, industry insiders have high hopes for March. Historically, March tends to drive more visitors to the casinos due to improved weather and seasonal trends. Over the past three years, March has consistently delivered impressive results, with casinos recording:
- $120.9 million in 2022
- $117.8 million in 2023
- $122.3 million in 2024
It seems the warmer weather encourages people to venture out more, potentially boosting casino visits. This March trend sets a positive expectation for the upcoming month, with no sign that it won't continue.
But later this month, several Michigan casinos are going smoke-free, so we’ll have to wait to see what effect the move will have on revenue.
Michigan Online Casinos Gaining Strength
Caesars Palace Online Casino and Horseshoe Online Casino are accessible on iOS, Android, and desktop for users aged 21 and older in Michigan.
Since their launch, online casinos have been thriving in the state, thanks to a welcoming regulatory environment and a growing number of gaming enthusiasts seeking convenient access to their favorite games from home.
Recently, Hollywood Casino debuted its own app in Michigan, joining a competitive market that continues to expand. Perhaps it's why, even in a month where MGM and MotorCity saw declines, Hollywood Casino at Greektown experienced growth, hinting at a possible shift in market dynamics. It's a clear indicator that while Detroit's casino scene may face ups and downs, opportunities for growth and change remain on the horizon.
