Detroit Casinos Motor Along In June As Revenue Rises 4%

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In terms of Detroit’s three commercial casinos, June proved to be a successful month.

In June, MGM Grand Detroit, Motorcity Casino, and Greektown Casino observed growth in their revenues compared to the previous year. Together, these three establishments accumulated a total of $113,073,887.16, reflecting a four percent surge from the $108,612,340.75 earned in June 2016.

	June 2016	June 2017	YoY change
MGM Grand Detroit	$47,555,020.17	$48,614,446.33	+2.2 percent
Motorcity Casino	$35,895,882.01	$37,943,849.44	+5.4 percent
Greektown Casino	$25,161,438.57	$26,515,591.39	+5.1 percent

MGM maintains market share lead

Although Motorcity Casino and Greektown Casino’s revenue increase may have more than doubled that of MGM Grand Detroit, the latter remains the dominant player in terms of total revenue and overall market share. While all three casinos are successful in their own right, MGM Grand Detroit holds the top position in the market.

It’s not particularly surprising, as the MGM Grand Detroit possesses a larger number of gaming terminals. Additionally, it benefits from the strong reputation of the MGM brand, and it was established a year before Motorcity Casino and two years before Greektown. Specifically, MGM opened its doors in 1999, Motorcity in 2000, and Greektown in 2001.

Year-to-date revenue

In five out of the six months during the first half of 2017, the three Detroit casinos surpassed the revenue achieved in 2016.

Month	2016 Revenue	2017 Revenue	YoY Change
January	$109,066,698.11	$112,004,791.29	+2.7 percent
February	$116,400,992.94	$117,241,823.84	+.8 percent
March	$124,949,116.98	$131,203,575.63	+4.8 percent
April	$122,356,901.35	$120,997,540.75	-1.2 percent
May	$118,534,756.46	$119,945,966.90	+1.2 percent
June	$108,612,340.75	$113,073,887.16	+4 percent
July	$118,462,544.37
August	$115,902,952.67
September	$112,167,563.98
October	$110,737,995.50
November	$111,502,032.21
December	$116,907,871.10

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The industry is off to a strong start and is on track to achieve one of its most successful years yet. It has the potential to surpass $1.4 billion in total casino revenue, a milestone not reached since 2012. The highest revenue ever recorded was in 2011, when Michigan’s three commercial casinos collectively generated an impressive $1,424,445,461.

Tax revenue continues to pour in

Michigan imposes a relatively low tax rate of 8.1 percent on Detroit’s three commercial casinos.

Apart from the state tax, Detroit casinos are required to contribute approximately 12 percent of their Gross Gaming Revenue (GGR) to the city of Detroit. This contribution is made through a combination of wagering taxes and as a part of their development agreement.

In June, the combined tax payments from MGM Grand, Motorcity, and Greektown amounted to $8.16 million to the state and $13.46 million to the city of Detroit.

The tax payments made by Detroit casinos so far this year.

• The state of Michigan received a payment totaling $57,871,874.43.
• The amount of $85,021,642.68 was paid to the city of Detroit.

The photograph was captured by Susan Montgomery from Shutterstock.com.

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