Detroit Casinos Report $94.4 Million in Gambling Revenue for January

Casinos in Detroit garnered just $94.4 million in monthly aggregate revenue (AGR) for the first month of 2024. Of this amount, $93.9 million was generated from slots and table game revenue in the first month of the year and $500,221 from retail sports betting.

This record low revenue is the lowest monthly revenue that was not caused by COVID or workers strike. January 2024’s earnings was a 9.1% drop from January 2023 when casinos earned $103.4 million and a 15.7% drop from December 2023’s $111.4 million.

Evidently, Detroit retail sportsbooks were not able to build on their 2023 strong finish in January 2024 as they also recorded a 20.4% drop in handle.

The three Detroit casinos earned the second lowest revenue on record since June 2005 when casinos earned $92.6 million in monthly revenue. Usually, the casinos have little to no trouble crossing the $100 million revenue mark each month but January 2024’s $93.9 million in revenue has to be somewhat of an eye-opener for the casinos.

By comparison, the other times the casinos earned way less was when they were hit by COVID restrictions in the first couple of months in 2021. The casinos earned $86.8 million and $86.5 million in February 2021 and January 2021 respectively.

Before the pandemic, the casinos earned over $120 million in January 2020 and February 2020. By October 2020, they collected $93.9 million in revenue. The other months of 2020 came with understandably lower revenue due to limited capacity amidst COVID regulations.

However, the lowest the three Detroit casinos have hit for gambling revenue is $81.7 million and $76 million. These revenues were recorded during the workers’ strike in October 2023 and November 2023, respectively.

MGM Grand Detroit still managed to gain 48% of January market share. This is followed by MotorCity Casino (30%) and Hollywood Casino at Greektown (22%). 

Each of the three Detroit casinos recorded decline in their table and slot game revenue in January when compared to January 2023.

MGM Grand Detroit recorded the highest decline of 11.3% to earn $44.6 million. MotorCity Casino and Hollywood Casino at Greektown earned $27.1 million and $22.2 million respectively. These earnings represent a respective 10.4% and 2.9% decline for both casinos.

These figures represent a concerning development for casinos that averaged $106.5 million in monthly revenue for 2023 and $104.7 million per month in 2022.

The State of Michigan received $7.6 million in taxes from the three casinos, down from $8.4 million that was paid for the same month last year. The City of Detroit also received $11.2 million in wagering taxes and development agreement payments.

Despite the slump in earnings, Michigan sports betting in Detroit had a solid showing. This development is connected to the Detroit Lions’ playoff run. MotorCity Casino and Hollywood Casino at Greektown saw better increase in year-over-year handle.

MotorCity Casino witnessed a 164.8% increase in handle totaling $9.8 million and Hollywood Casino at Greektown had a 55.2% increase in handle totaling $9.1 million. However, MGM Grand Detroit recorded a 7.8% decline with a $5.3 million handle. Hollywood Casino at Greektown actually lost over $1 million in revenue in January despite its $9.1 million in wagers.

January’s $24.2 million total handle follows a $30.4 million handle in December. Outside of December’s total handle, January’s mark was the second-highest mark for the Detroit casinos since April of 2022.

However, the total sports betting revenue for the month was $520,988. This marks a sharp drop from December’s $4.8 million revenue. The State of Michigan received $58,073 in state tax revenue and the City of Detroit received $70,978 as tax revenue.