Detroit casino revenue continues downward trend in Nov: new order closes casinos through Dec. 20

Detroit’s three privately-owned casinos reported $50.4 million in monthly aggregate revenue for November, despite being forced to close for three weeks per an epidemic order issued on November 15, 2020, by the Michigan Department of Health and Human Services (MDHHS) and enforced by the Michiga 7BALL CC n Gaming Control Board (MGCB).

The trio of casinos has also had to operate at just 15 percent capacity, one of the most stringent occupancy thresholds issued for a commercial casino, since August 5 after executive orders issued by Dem. Gov. Gretchen Whitmer closed all three on March 16 when the coronavirus pandemic hit.

Table games and slots:

According to the MGCB…

…Table games and slots at MGM Grand Detroit,  MotorCity Casino, and the Penn National Gaming operated Greektown Casino generated $48.1 million in revenue while sports betting brought in $2.3 million.

November slots and table games revenue for the properties plunged by 61.3 percent in comparison with the same period last year and dropped 48.7 percent compared with numbers from this year October. Revenue for table games and slots through the end of November decreased 54.9 percent compared with the results from January through November.

When compared with November 2019, MGM Grand Detroit’s monthly gaming revenue fell 62.1 percent to $20.5 million, while monthly revenue for the locally owned MotorCity Casino dropped 57.1 percent to $17.5 million, and Greektown Casino saw its monthly revenue fall 65.7 percent to $10.1 million.

During November, the three commercial casinos handed over $3.9 million in gaming taxes to the State of Michigan compared with last year November’s $10.1 million.  For the month, the trio also reported $5.7 million in wagering taxes and development payments were submitted to the City of Detroit.

Retail sports betting:

The casinos reported a total sports betting handle of a bit over $25 million during November, while qualified adjusted receipts (which subtracts free play promotions) for their retail sports betting on the month were $1,130,956, $645,310 and $561,372 for MotorCity, Greektown and MGM respectively.

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Just under $90,000 in state taxes was paid by the casinos while they reported submitting retail sports betting taxes in the amount of $107,999 to the City of Detroit.

Meanwhile, aggregate retail sports betting qualified adjusted gross receipts for the period through November 30, 2020, were $7.4 million for MGM Grand, $5.4 million for MortoCity, and $3.6 million at Greektown.

Market shares:

According to the MGCB, November market shares based on aggregate revenue including slots, table games and retail sports betting were 42 percent for the MGM Resorts International-operated MGM Grand, 37 percent for the Marian Ilitch of IH Gaming (Detroit Entertainment, LLC)-owned MotorCity, and lastly, 21 percent for Greektown Casino.

Extended closure:

As COVID-19 surges on in Michigan, on Monday, December 7, 2020, an updated order put in place by MDHHS Director Robert Gordon, closes casinos and other entertainment venues through at least December 20. The original order in effect from November 18 was set to expire Tuesday, with Governor Whitmer announcing the 12-day extension on Monday, according to multiple news outlets.

Michigan’s 24 American Indian tribal casinos, which are owned by federally recognized sovereign nations and governed by the National Indian Gaming Commission (NIGC), do not fall under the jurisdiction of the MDHHS and therefore are not subject to the order.