Detroit Casinos Rebound With $116.2 Million Combined Revenue in December

Jessica Aletor
By:
Jessica Aletor
15/01/2024/
Industry
Michigan Casino News

Highlights

  • MGM Grand Detroit, Hollywood Casino and MotorCity Casino all combined for a total revenue of $116.2 million in December 2023.
  • Slots and table games accounted for $111.4 million of the monthly total, while yearly aggregate revenue for 2023 hit $1.237 billion.
  • Retail sports betting in Detroit also recorded its highest betting handle since January 2022 with $30.4 million worth of wagers accepted 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.

Table Games and Slots Contribute $111.4 Million at Detroit Casinos 

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.

Detroit Reports Highest Sports Betting Handle in Almost Two Years

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.

Overall Annual Revenue in 2023 Crosses $1.2 Billion Despite Strike 

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.

Jessica is a news contributor to Gamble Online Michigan. She holds a Bachelor's degree in Economics but has over three years of experience working in the hospitality and gambling industry. Despite her core finance and investment banking background, she has been a casino feature writer for N1 Interactive Limited and multiple gambling affiliate sites. Her work has been featured on the bet365 blog, casino.zone and Max Force Racing. She spends her time between Michigan and California, staying up-to-date on the latest industry developments