Detroit Casinos Rebound With $116.2 Million Combined Revenue in December

Against all odds, Detroit retail casinos ended the outgone year with some respite, after a month’s long workers’ strike that saw the industry record its poorest run in years. During the industrial action that spanned mid-October to mid-November, the three casinos earned $82.8 million and $79.1 million in monthly revenue, respectively.

However, with all casinos back to full operating capacity in December, the retail outlets recorded a whopping $116.2 million, its second-highest monthly total throughout 2023. This brought the annual revenue generated in 2023 to $1.237 billion, slightly falling short of 2022’s yearly aggregate revenue.

Revenue from slots and table games totaled $111.4 million, accounting for 95.9% of the combined monthly aggregate. December 2023’s gaming revenue was 46.6% more than Detroit casinos could manage in November due to the workers’ strike. The monthly figure was also a 2.9% year-on-year improvement from the $108.3 million retail casino revenue generated in November 2022.

Though MGM Grand Detroit remained Detroit's top earner with $50.6 million in December 2023, it saw a 0.7% decline compared to December 2022. This figure is also 7.5% lower than the casino's 2023 record monthly total of $54.4 million set in March.

MotorCity Casino’s December revenue hit $34.7 million, up 5.1% from the previous year but off slightly from its March 2023 peak of $35.8 million. The same goes for Hollywood Casino at Greektown which reported a haul of $26.1 million in December. Although the retail partner of Hollywood Online Casino Michigan saw a welcome 7.5% increase from December 2023, it still came in slightly below its March 2023 high of $27.6 million.

Away from casino gaming, December also proved a touchdown for Detroit's retail sportsbooks, delivering one of the most impressive performances in almost two years. Detroit's retail sportsbooks saw a surge in December, racking up $30.4 million in betting handle, their highest since January 2022's $35.9 million.

Sports betting handle figures have not exactly been impressive in Detroit in the past 20 months. In fact, December’s wagering handle was a whopping 88.8% improvement on December 2022 when the retail sportsbooks only managed $16.1 million in combined handle. 

Furthermore, during the two strike months, Detroit retail sportsbooks accepted a total of $33.4 million in bets. Surprisingly, however, these two months rank among the best five months by wagering handle in 2023. This further spotlights December as a considerably positive period for sports betting in the state. 

MGM Grand Detroit couldn’t share in the excitement, though, as its handle of $3.6 million was its fourth-worst total in 2023. On the other hand, MotorCity and Hollywood Casino saw their highest monthly handle of 2023 with $16.8 million and $10 million worth of bets accepted, respectively. 

The massive $30.4 million betting handle translated to $4.8 million in revenue, the highest since October 2020's $7.6 million. Betting qualified adjusted gross receipts went up by $3.1 million compared to the same period in 2022, and up 54.9% compared to November 2023. 

MotorCity, the operator of FanDuel Sportsbook MI, accumulated the most revenue with $2.3 million. Hollywood Casino came close in second position after raking in $2.2 million. For MGM Grand Detroit, the sports betting woes continue with only $291,171 in adjusted gross receipts for December.

After a strong December showing, the three Detroit casinos wrapped up 2023 with a staggering $1.22 billion in combined slot and table game revenue. On the sports betting front, they recorded a rather disappointing annual total of $14 million. This brought the yearly aggregate revenue to $1.237 billion, about 3% lower than 2022. 

The Detroit workers' strike likely cast a shadow on 2023's casino revenue, with an average monthly income of $105.6 million in unaffected months suggesting potential for exceeding 2022's results.

In December, Detroit casinos paid $9.0 million in gaming taxes to Michigan, and $13.8 million in wagering taxes to the City of Detroit. Additionally, the retail sportsbooks paid $180,822 in gaming taxes to the state and $221,005 in wagering taxes to the city. Overall gaming taxes amounted to $99.0 million while sports betting taxes totaled $528,314 throughout 2023.