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Revenue Figures For Detroit Casinos In November Continue To Reflect The Impact Of The Strike

Quick Intro

Detroit’s three casinos – Motor City, Hollywood Casino at Greektown, and MGM Grand – saw their November aggregate gaming revenue (AGR) reach $79.1 million, marking a notable downturn:

Slot and table games contributed $76 million to this total.
Retail sports betting added $3.1 million.

This $76 million in gaming revenue signifies a 6.98% reduction from October’s $81.7 million, largely attributed to the casino workers’ strike, which had a greater impact on November’s revenues compared to October.

MGM Grand Detroit experienced the most significant revenue drop for the month. In contrast, MotorCity and Greektown displayed fairly stable gaming figures in comparison to October.

Historic Low in Monthly Revenue for Detroit Casinos

According to PlayMichigan, the $76 million gaming revenue for November was the lowest since February 2001, making it the weakest full-month total in 22 years, nearly mirroring the entire operational history of Detroit casinos since their inception in December 2000.

This figure also reflects a 23.92% year-over-year decline from the $99.9 million reported in November 2022.

MGM Grand Detroit Faced the Steepest Decline in November

MGM Grand Detroit felt the brunt of the impact in November, with the strike persisting throughout the month until an agreement was reached on December 2. The strike at the other two casinos concluded earlier, on November 17.

The strike, starting on October 17, significantly affected Detroit’s gaming revenue in both October and November, as all three casinos scaled back their gaming operations during the labor dispute.

The Michigan Gaming Control Board revealed that from January 1 to November 30, table games and slots revenue at Detroit casinos fell by 3.2% compared to the same period the previous year, with:

  • MGM reporting a 34.4% decrease to $30.6 million.
  • MotorCity seeing a 17.8% drop to $24.7 million.
  • Hollywood Casino at Greektown declining by 10.8% to $20.7 million.

Given the average pre-strike monthly revenue of $106.5 million, with October and November bringing in $82.8 million and $79.1 million respectively, it’s estimated that the casinos lost around $51.1 million during the strike ($23.7 million in October and $27.4 million in November).

In November, the Detroit casinos contributed $6.2 million in gaming taxes to the state, down from $8.1 million in the same month the previous year.

Retail Sports Betting Reaches New High in November

Despite the strike’s negative impact on casino revenues, Detroit casinos saw a record in retail sports betting revenue in November.

They reported a $15.3 million sports betting handle, a 15.5% decrease from both November 2022 and October 2023. Yet, they achieved $3.1 million in revenue, surpassing the highest mark set since November 2021. The November retail sports betting QAGR showed:

  • A $2.0 million rise from October 2023.
  • A $1.2 million increase compared to November 2022.

 

Detroit Casinos Focus on Recovery and Future Growth

Despite facing a challenging November due to the workers’ strike, Detroit casinos are now focusing on recovery and future growth strategies. With the strike resolved, these establishments are expected to revitalize their operations, attract more visitors, and possibly introduce new gaming and entertainment options. This proactive approach aims not only to recoup the losses incurred during the strike but also to enhance the overall customer experience. The casinos are likely to leverage their strong brand presence and loyal customer base to re-establish their position in the gaming market and explore innovative avenues for expansion and increased revenue.

Final Thoughts

November 2023 was a tough month for Detroit’s casinos, with revenues significantly impacted by the workers’ strike. The $79.1 million in aggregate gaming revenue, including a notable decline in slots and table games, marked a historic low. MGM Grand Detroit was particularly hard hit, but all three casinos faced challenges. On a positive note, retail sports betting reached a new high, showing resilience in this segment. With the strike now resolved, the focus shifts to recovery and growth, signaling a potentially brighter future for Detroit’s gaming industry.

Source: https://content.govdelivery.com/accounts/MIGCB/bulletins/37f9667

 

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