In October 2023, the three Detroit casinos collectively reported an AGR of $82.8 million
In October 2023, the three Detroit casinos – MGM, MotorCity, and Hollywood Casino at Greektown – collectively reported an aggregate revenue (AGR) of $82.8 million. This article provides a detailed analysis of the revenue breakdown, market shares, and notable trends for the month. The lion’s share of the October revenue, approximately $81.7 million, was generated from the traditional gaming segments of table games and slots. Retail sports betting contributed an additional $1.1 million to the overall AGR.
Market Shares: MGM, MotorCity, and Hollywood Casino at Greektown
The market shares for October 2023 were distributed among the three major casinos as follows:
MGM: 46%
MotorCity: 31%
Hollywood Casino at Greektown: 23%
Performance Comparison: October 2023 vs. October 2022
Table Games and Slot Revenue: There was an 18.9% decrease in revenue compared to October 2022. Additionally, the monthly revenue for October 2023 was 18.3% lower than September 2023. The cumulative table games and slots revenue from January 1 to September 30 witnessed a 1.3% decrease compared to the same period in the previous year.
Individual Casino Performances: Each of the Detroit casinos experienced a decline in gaming revenue compared to October 2022:
MGM: Down by 19.6% to $37.3 million
MotorCity: Down by 22.8% to $25 million
Hollywood Casino at Greektown: Down by 11.7% to $19.4 million
Gaming Taxes: Contribution and Changes
In October, the three Detroit casinos collectively paid $6.6 million in gaming taxes to the State of Michigan. This marked a decrease from the $8.2 million paid during the same month last year.
Wagering Taxes and Development Agreement Payments
The casinos reported submitting $10.1 million in wagering taxes and development agreement payments to the City of Detroit in October, emphasizing their commitment to contributing to the local community.
Retail Sports Betting: Handle, Gross Receipts, and Taxes
Total Retail Sports Betting Handle: The three Detroit casinos reported a total retail sports betting handle of $18.1 million for October.
Gross Receipts and QAGR: Total gross receipts from retail sports betting amounted to $1.1 million. However, the Qualified Adjusted Gross Receipts (QAGR) showed a decline of 46.3% compared to October 2022, with a further decrease of 28.6% from September 2023.
QAGR by Casino:
MGM: $365,705
MotorCity: $669,028
Hollywood Casino at Greektown: $90,430
Tax Contributions: In October, the casinos paid $42,531 in gaming taxes to the state and reported submitting $51,982 in wagering taxes to the City of Detroit based on retail sports betting revenue.
Fantasy Contests: Adjusted Revenues and Taxes
For September, fantasy contest operators reported total adjusted revenues of $2.1 million and paid taxes amounting to $178,346. From January 1 through September 30, fantasy contest operators reported $16.8 million in aggregate fantasy contest adjusted revenues, contributing $1.4 million in taxes.
In conclusion, the detailed insights into the October 2023 casino revenue showcase both challenges and opportunities for Detroit’s gaming industry. The nuanced analysis of each casino’s performance and the tax contributions to both the state and the city provides a comprehensive overview of the evolving landscape.
