February Revenue at Detroit Casinos Crosses $100M Mark After Poor Start to 2024

The Michigan Gaming Control Board (MGCB) has revealed the combined revenue of casinos in Detroit for February. According to the information available, Detroit casinos earned a total of $104.8 million from poker, slots, and table games.

This figure represents a 0.2% slump from the $105 million that was earned in the same month last year. However, when compared with the casinos underwhelming performance in January 2024, it marks an impressive 11.6% jump from the first month’s $93.9 million.

This positive result was not replicated in retail sports betting. In this area, the casinos suffered a drop in February as they acquired just $13.2 million in handle. While this is an 8.2% increase from February 2023’s $12.2 million in handle, it is a 45.4% drop from January’s $24.2 million in handle.

On top of this, Detroit sportsbooks took a collective loss of $120,142 for the month.

Detroit's casinos experienced a significant rebound in February, shaking off the disappointing performance observed in the previous month. In February 2024, they collectively raked in $104.8 million in gaming revenue. 

This development points to a robust recovery from January's figures, which were reminiscent of the downturn experienced during the pandemic.

Remarkably, all three Detroit casinos saw an uptick in revenue from January to February. This might be an indication that consumer spending had normalized following the holiday season's conclusion.

MGM Grand Detroit, the operators of BetMGM Casino Michigan, earned $49.3 million, earning itself 47% of market share. MotorCity Casino earned $31.6 million, gaining 30% of market share. Finally, Hollywood Casino at Greektown earned $23.8 million, which represents 23% of market share.

These figures, when compared with February 2023 revenue, revealed that only MGM experienced a 1.6% slump. On the other hand, MotorCity was up 1.3% and Hollywood Casino at Greektown was up 0.6%.

Further analysis of the casinos’ table games and slots revenue for January and February 2024 shows a 4.7% decrease compared to the same period last year.

February’s uptick in revenue led to $8.49 million in state wagering tax revenue and $12.5 million in the City of Detroit wagering tax and development agreement payments.

The year is still off to a slow start for casinos in Detroit, even with the impressive jump in revenue. Through the first two months of 2024, Detroit casinos averaged just under $100 million per month.

With January 2024’s revenue hitting $93.9 million, it marked the second lowest monthly revenue since June 2005, underscoring the slow beginning to the year.

In contrast, the average revenues for the same period in previous years were significantly higher or varied. Year 2020 saw $120,889,887 while 2021 dropped to $86,621,015 due to pandemic restrictions. 2022 slightly recovered to $97,281,588, and 2023 improved to $104,182,420.

Despite the slow start, there is optimism within the industry that 2024’s total revenue might surpass the figures from the last few years. Before a workers’ strike affected operations, 2023 was on track to exceed 2022’s total revenue, although it ultimately fell short.

March 2024 is eagerly awaited, as historical data suggests an uptick in revenue during this month. For instance, March 2023 saw revenues of $117.8 million, and March 2022 had even higher revenues at $120.9 million.

In other news, the NFL season significantly increased both online and retail sports betting activity in Michigan. This is partly due to the performance of the Detroit Lions.

Following the Lions’ playoff exit in late January, attention shifted entirely to the Super Bowl for bettors.

Despite a consistent overall betting volume compared to February of the previous year, this year’s sports betting revenue fell short of expectations.

February saw MGM Grand Detroit and MotorCity Casino facing losses in their sports betting operations, whereas Hollywood Casino reported modest earnings.

The sportsbooks made $475,913 in revenue last but lost $120,142 this year. Hollywood Casino at Greektown made $129,665 on $5.4 million in wagers. MotorCity Casino lost $128,011 on $4.7 million in wagers while MGM Grand Detroit lost $121,796 on $3.1 million in wagers.

The casinos contributed $4,901 in state gaming taxes and paid $5,991 in wagering taxes to the City of Detroit.

There is a hopeful outlook that March Madness will provide a much-needed uplift to sports betting revenue.