Ongoing labor actions in Michigan have resulted in a decline in earnings for Detroit’s trio of commercial gambling establishments. In October, their combined income reached $82.8 million (£66.5 million/€76.2 million).
Since the commencement of the labor dispute on October 17th, certain Detroit casino workers have been engaged in industrial action, leading to partial closures of the gambling venues. Some facilities have remained shut for an extended period, approaching a month.
This situation has had a noticeable impact on October’s monthly financial performance, with earnings experiencing a 19.5% year-on-year decrease, falling from $102.8 million to $82.8 million. The October figure also represents an 18.5% decline compared to September’s $101.6 million.
Specifically, Detroit’s table game and slot machine revenue amounted to $81.7 million, a decrease of 18.9% year-on-year. This total was also 18.3% lower than September’s total.
The remaining $1.1 million was attributed to sports betting qualified adjusted gross revenue (QAGR), which was down 46.3% from 2022. Sports betting QAGR was also 28.6% lower than September.
In terms of sports betting volume, Detroit consumers wagered $18.1 million at casinos in October. This was a significant decrease from $34.2 million in the same period last year, but remained flat compared to September 2023.
MGM holds the top position in the Detroit market, commanding a 46% market share with $37 million in revenue.
MGMs three gambling houses in Michigan reigned supreme in October, raking in a whopping $30 million from casino and table games, along with $365,705 in sports wagering earnings.
MotorCity came in a close second, claiming 31% of the Detroit market in October. The casino’s gambling and table game earnings hit $25 million, with an additional $669,028 in sports wagering revenue.
Greektown Casino-Hotel secured the third spot, holding 23% of the market share that month. Casino and table game earnings reached $19.4 million, while sports betting revenue hit $90,430.
In terms of taxes, the trio of casinos paid $6.6 million in gaming taxes to the state of Michigan in October. They also contributed $10.1 million in wagering taxes and development agreement payments to the city of Detroit.
As for sports betting activity, this generated $42,531 in gaming taxes for the state of Michigan. The casinos also reported $51,982 in wagering taxes to the city of Detroit.
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