Detroit Casinos See Revenue Decline Amid Labor Unrest
The Motor City’s gambling industry experienced a downturn in November, with earnings taking a significant hit due to labor unrest. The city’s gambling venues saw a 22.3% decrease in revenue compared to the same period last year, totaling $79.1 million.
The city’s three land-based gambling establishments witnessed a decline of $101.8 million in revenue compared to the same period in the previous year. November’s figures also showed a 4.5% drop from the $82.8 million reported in October.
This decline coincided with a labor dispute in Detroit. Workers initiated a strike on October 17th and didn’t reach a pay agreement until mid-November. This resulted in understaffing at MGM Grand, Greektown, and MotorCity casinos for the majority of the month.
Of the total revenue generated by the three casinos, $76 million originated from table games and slot machines. This represented a 23.9% decrease from the previous year’s total and a 7.0% decline from October 2023.
The remaining $3.1 million in revenue was attributed to sports betting Qualified Adjusted Gross Revenue (QAGR). This marked a 63.2% increase from November 2022 and a 181.8% increase from October of this year.
In terms of sports betting volume, Detroit gamblers wagered $15.3 million on sports betting at casinos. This represented a 15.5% decrease from both November 2022 and October 2023.
Bridging the gap for MGM Detroit.
During the eleventh month, MGM remained the top-rated gambling establishment in Detroit, claiming a significant portion of the market, reaching 34%. Nevertheless, its advantage has dwindled in comparison to the tenth month, when it held a larger share, reaching 46%.
MGM’s earnings from table games and slot machines reached a substantial amount, totaling $30.6 million, while revenue from sports betting amounted to $230,847.
MotorCity narrowed the gap with MGM, also achieving a 34% share of the market. Its revenue from table games and slot machines reached $24.7 million, and its sports betting revenue was $2.2 million.
Another Detroit casino, Greektown Casino-Hotel, captured 27% of the market share. Greektown announced its table games and slot machine revenue was $10.8 million, and its sports betting revenue was $657,545.
In terms of taxes, the casinos paid a substantial amount to the state of Michigan in November, reaching $6.2 million in gaming taxes. Additionally, they paid $9.4 million in wagering taxes and development agreement payments to the city of Detroit.
Regarding sports betting, Michigan’s total tax revenue was $116,769. Additionally, the three casinos paid $142,718 in wagering taxes to the city of Detroit.
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