Detroit Casinos Report Nearly $639 Million in Revenue in 2020
The three Detroit casinos – MGM Grand Detroit, MotorCity Casino, and Greektown Casino – reported nearly $639 million in aggregate revenue during 2020, compared with a record of $1.454 billion in 2019. Table games and slots generated 97% of revenue at $620.4 million, while retail sports betting generated 3% of revenue at $18.3 million during 2020. Year-over-year revenue fell 57.3% from 2019 revenue.
Due to COVID-19 operating restrictions, the Detroit casinos were closed from March 16 through August 4, and from November 18 through December 22. From August to November, the casinos operated at limited capacity in compliance with an epidemic order issued by the Michigan Department of Health and Human Services.
Table Games and Slot Revenue and Taxes for 2020
Year-over-year table game and slot revenue declined 58.8% to $257.1 million for MGM Grand Detroit, 54.9% to $222.7 million for MotorCity Casino, and 58.3% to $140.6 million for Greektown Casino. Slots provided 78% of the revenue during 2020, while table games contributed 19%.
The 2020 market shares were:
- MGM Grand Detroit – 41%
- MotorCity Casino – 36%
- Greektown Casino – 23%
The Detroit casinos paid $50.3 million in wagering taxes to the State of Michigan in 2020, compared with $117.8 million in 2019 on slots and table game revenue. The three casinos reported $73.8 million in wagering taxes and development agreement payments to the City of Detroit during 2020.
Retail Sports Betting Revenue and Taxes for 2020
Aggregate retail sports betting qualified adjusted gross receipts of $18.3 million for 2020. Qualified adjusted gross receipts for the casinos were the following:
- MGM Grand Detroit – $8.2 million
- MotorCity Casino – $6.0 million
- Greektown Casino – $4.1 million
Qualified adjusted gross receipts are gross sports betting receipts minus the monetary value of free play incentives provided to and wagered by bettors. The casinos reported a total handle of $130.8 million during 2020.
The Detroit casinos paid $690,865 in taxes for retail sports betting to the State of Michigan in 2020 and reported submitted $844,391 in retail sports betting taxes to the City of Detroit.
The three Detroit casinos reported $23.93 million in monthly aggregate revenue in December while operating at a limited capacity for nine days. Table games and slots generated $22.05 million in revenue, while retail sports betting generated $1.88 million in revenue.
Revenue for table games and slots fell 82.8% during December when compared with 2019 results. Monthly revenue was down 54.1% from November. December revenue fell 86% to $7.59 million for MGM Grand Detroit, 79% to $9.09 million for MotorCity Casino, and 82.1% to $5.37 million for Greektown Casino when compared with December 2019.
During the month of December, the three Detroit casinos paid $1.8 million in wagering taxes to the State of Michigan, compared with $10.4 million paid in December 2019. The casinos reported making $2.6 million in wagering taxes and development agreement payments to the City of Detroit during December 2020.
The Detroit casinos reported a total handle of $9,720,393 and $1.88 million in retail sports betting qualified adjusted gross receipts for December. Qualified adjusted gross receipts for the casinos were the following:
- MGM Grand Detroit – $776,788
- MotorCity Casino – $646,003
- Greektown Casino – $460,449
The casinos paid $71,186 in retail sports betting taxes to the State of Michigan during December, and reported submitting $87,006 in retail sports betting taxes to the City of Detroit.
Q4 2020 Table Games and Slot Revenue and Taxes
The Detroit casinos had fourth quarter revenue of $163.9 million, which was 55.4% lower than fourth quarter 2019. The State of Michigan was paid $13.3 million in taxes in the fourth quarter of 2020, compared with $29.8 million in 2019. The casinos reported $19.5 million in wagering taxes and development agreement payments to the City of Detroit during the fourth quarter, compared with $50.3 million during the fourth quarter of 2019.
Fourth quarter revenue and percentage of decline from 2019 for each casino is the following:
- MGM Grand Detroit – $65.8 million, 58.1%
- MotorCity Casino – $62.9 million, 49.1%
- Greektown Casino – $35.2 million, 59.5%
Fantasy contest operators reported total adjusted revenues of $2.2 million for November, and paid taxes of $188,543. Through November 30, 2020, fantasy contest operators reported $14.7 million in aggregate fantasy contest adjusted revenues and paid $1.2 million in taxes to the State of Michigan.
Global Gaming Business Magazine (GGB) announced its “25 People to Watch for 2021”, which highlights the talents of individuals who are shaping the future of the gaming industry. Individuals named this year represent diverse sectors of the industry, including commercial casinos, tribal casinos, sports betting, online gaming, technology, regulating bodies, and professional services.
The “25 People to Watch for 2021” are as follows:
- Bill Hornbuckle – President & CEO, MGM Resorts International
- Cristina Romero de Alba – Partner, Loyra Abogados
- Tan Sri Dr. Chen Lip Keong – Founder, Controlling Shareholder, and CEO, NagaCorp Ltd.
- Daisy Ho – Chairwoman, SJM
- Mike Bean – CEO, Saginaw Chippewa Indian Tribe Gaming Enterprises
- Adam Whitehurst – SVP, Slots Sales, AGS
- Joe Carlon – Director of Engineering, Digital, Gaming Laboratories International
- Sarah Koch – Senior Director for Legal and Government Affairs, DraftKings
- Arthur Mothershed – VP of Business Development, Wind Creek Hospitality
- Mitsuhiro Miyazaki – Managing Director, Konami Australia Pty. Ltd.
- Bryan Newland – Chairman, Bay Mills Indian Community Executive Council
- Michael Olujic – General Manager, Tachi Palace Casino Resort
- Karen Wells – Executive Director, Massachusetts Gaming Commission
- Hector Fernandez – President, Americas, Aristocrat Technologies
- Dean Ehrlich – EVP and Games Business Leader, Everi Holdings Inc.
- Erika Nardini – CEO, Barstool Sports
- Jose Flores – VP and General Manager, Gun Lake Casino
- Melonie Johnson – President and COO, Borgata Hotel Casino & Spa
- Kris Saw – Chief Technology Officer, Kambi
- Eileen Moore Johnson – EVP and Chief Human Resources Officer, Scientific Games
- Keith Kruczynski – VP, Game Development and Design, Gaming Arts, LLC
- Joe Pappano – CEO, Sightline Payments
- Jeremy Weinstein – Regional Vice President of Marketing, Las Vegas, Caesars Entertainment
- Dave McDowell – CEO, FSB
- Mary Beth Higgins – CEO, Affinity Gaming