Detroit Casinos Report $109.7 Million April Aggregate Revenue

According to the April revenues released by the Michigan Gaming Control Board (“MGCB”), the three Detroit casinos reported $109.7 million in monthly aggregate revenue in April. Table games and slots generated $109.6 million in revenue, and retail sports betting generated $120,350 in revenue.

The April market shares were:

MGM, 46%
MotorCity, 30%
Hollywood Casino at Greektown, 24%

Monthly revenue for table games and slots fell 6.2% when compared to April 2022 results. April revenue decreased 6.9% compared to March 2023 results.

When compared with April 2022, monthly gaming revenue results were:

MGM, $50.2 million, decrease of 11.5%
MotorCity, $34.2 million, decrease of 6.1%
Hollywood Casino at Greektown, $25.2 million, increase of 6.3%

The three Detroit casinos paid $8.9 million in gaming taxes to the State of Michigan, compared to $9.5 million for the same month last year. The casinos also reported submitting $13 million in wagering taxes and development agreement payments to the City of Detroit in March.

The casinos recorded $326.2 million in the first quarter of 2023 for a 3.4% increase compared to $315.5 million recorded in first quarter of 2022. The state received $26.4 million in gaming taxes during the first quarter of 2023 compared to $25.6 million paid the same period last year.

Retail sports betting qualified adjusted gross receipts (QAGR) reported for April decreased by 93.6% when compared to April 2022, due to a patron winning $2.6 million at Motor City Casino placing parlay wagers. Monthly QAGR fell by $91.5% compared to March 2023. The Detroit casinos reported total retail sports betting handle of $15,305,885 and total gross receipts were negative ($14,489).

April QAGR by property were:

MGM, $432,195
MotorCity, negative ($1.7 million)
Hollywood Casino at Greektown, $1.4 million

The three Detroit casinos reported submitting taxes on retail sports betting in the amounts of $69,237 to the State of Michigan, and $84,624 to the City of Detroit during for April 2023.

Fantasy contest operators reported total adjusted revenues of $2.1 million and paid taxes of $77,504 during March 2023.

For the first 3 months of 2023, fantasy contest operators reported $6.8 million in aggregate fantasy contest adjusted revenues and paid $572,626 in taxes

AGA Report – Five Years Post-PASPA: Consumer Sports Betting Trends

New research released by the American Gaming Association (“AGA”) shows that Americans support legal sports betting:

85% of American adults agree with the Supreme Court’s decision to strike down the Professional and Amateur Sorts Protection Act (“PASPA”), increasing from 63% in 2019.
77% of American adults support legalization in their state of residence.
78% of online bettors place all or most bets through regulated operators.
77% of online sports bets are now placed through regulated operators, increasing from 44% in 2019.

Consumer awareness is improving, consumers have a significantly better understanding of the legal status of sports betting in their home state. However, survey results also point to continued need for education.

Only 29% of American adults say they are unsure of the legal status of sports betting in their state, a decrease from 45% since 2018. However, 70% of sports bettors that placed bets with illegal operators believed they were indeed betting either exclusively with legal sportsbooks operators or splitting their bets with both legal and illegal operators.

The misrepresenting of legal status of illegal offshore sites by marketing themselves as regulated sites adds to consumer confusion.

Consumer education is making an impact, since May 2018, American adults have legally wagered $220 billion nationwide, thus generating $3 billion in state and local taxes, for education, healthcare, infrastructure, responsible gaming and problem gambling resource funding and more.

“Five years post-PASPA, the AGA and our members continue to support responsibly expanding the legal market while cracking down on predatory illegal operators. The regulated industry and our partners across the entire ecosystem—policymakers, law enforcement, regulators, leagues, media, technology providers and more—have made significant strides in our collaborative consumer education efforts since 2018, and we will continue to find new ways to enhance consumer protections as the market matures.” – AGA President and CEO Bill Miller

Gun Lake Casino Announces Promotions of Senior Executives

Gun Lake Casino announced three significant organizational changes that will strengthen the leadership team and drive continued growth and success. Effective immediately, Jose Flores will assume the role of Senior Vice President and General Manager, Carter Pavey as the Vice President of Operations, and Brian Penninga as Director of Marketing.

In a press release issued by Gun Lake Casino this week the casino stated: “Jose Flores, an industry veteran with a strong background in gaming and hospitality, has been appointed Senior Vice President and General Manager. Flores has been instrumental in leading Gun Lake Casino’s strategic growth and development since joining the team in June 2019. He has consistently demonstrated exceptional leadership skills and an unwavering commitment to the success of the casino. In his new role, Flores will oversee all aspects of the property, including the forthcoming hotel and entertainment complex, as well as gaming, dining, entertainment, and Guest services, ensuring a seamless and unparalleled experience for all visitors.

Carter Pavey, a day-one Team Member of the Gun Lake Casino family, has been with the property since its opening and has previously held the roles of Director of Marketing and Assistant General Manager. With his vast experience and passion for the gaming industry, Pavey brings a wealth of knowledge to his new role as Vice President of Operations. His proven track record of driving operational efficiency, revenue growth, and exceptional Guest experiences will be invaluable as he takes on this new responsibility. Pavey will oversee several operations departments of Gun Lake Casino, ensuring the highest standards in customer service and operational excellence are maintained.

Brian Penninga has been a Team Member since 2016, he started as a Bartender at Gun Lake Casino and has held various roles, including Assistant Beverage Manager, Marketing Manager, and most recently Assistant Director of Marketing. Penninga’s diverse experience, commitment to Guest satisfaction, and marketing expertise make him an ideal fit for the role of Director of Marketing. In this new capacity, he will lead the marketing team in developing and executing strategic marketing initiatives to promote Gun Lake Casino’s gaming, dining, and entertainment offerings.”

“Gun Lake Casino is excited to announce these new appointments for Brian Penninga, Carter Pavey and Jose Flores and thank them both for their dedication to our Team Members, Guests, and the Gun Lake Tribe. Their combined expertise, passion for the industry, and dedication to delivering exceptional experiences will ensure that Gun Lake Casino continues to excel as a premier gaming and entertainment destination,” said Sal Semola, President and CEO of Gun Lake Casino.