Detroit casinos post 2.6% revenue increase in January despite sharp sports betting win drop

Detroit’s three casinos have reported their January financial results, showing $103.5 million in monthly aggregate revenue. Table games and slots generated $103.4 million, while retail sports betting produced $111,023. Overall revenue increased 2.6% year-on-year, despite a sharp drop in sports betting revenue.

As reported by the Michigan Gaming Control Board, market shares during January were 48% for MGM Grand Detroit, 30% for MotorCity Casino and 22% for Hollywood Casino at Greektown.

Monthly table games and slots revenue rose 4.4% compared with January 2022 results. However, revenue declined 4.5% in contrast to December results.

Compared with the same period last year, monthly gaming revenue rose 3.2% to $50.2 million at MGM and 1.3% to $30.3 million at Motor City Casino. Hollywood Casino at Greektown reported $22.9 million monthly revenue for an 11.9% gain compared to January 2022 results. 

During the first month of the year, the three Detroit casinos paid $8.4 million in gaming taxes to the State of Michigan, compared with $8 million for the same month last year. The three casinos also reported submitting $16.3 million in wagering taxes and development agreement payments to the City of Detroit during January.

Retail sports betting qualified adjusted gross receipts (QAGR) for January dropped by $1.8 million, or 94.3%, when compared with January 2022 results. QAGR also declined by $1.5 million, or 93.2%, when compared with December results.

Total gross receipts were $149,379, and total handle was $15.3 million. State taxes from sports betting at the Detroit casinos were $8,940 compared with $73,070 for the same month last year. The three Detroit casinos reported submitting $10,926 in wagering taxes to the City of Detroit during January.

During December, fantasy contest operators reported total adjusted revenues of $1.6 million and paid taxes of $133,324. Operators reported aggregate fantasy contest adjusted revenues of $16.8 million and paid $1.4 million in taxes during 2022.

Back in January, the regulator announced Detroit’s three casinos reported $1.27 billion yearly revenue in 2022. Slots generated 77% of revenue at $983.7 million, table games provided 21% of revenue at $273.3 million, and retail sports betting added 2% of revenue at $18.8 million. 

By comparison, the casinos produced $1.29 billion in aggregate revenue in 2021, implying a slight 1% decrease. The 2022 market shares were at 48% for MGM; Motor City at 31%, and Hollywood at 21%.