In a press release dated September 10, 2019, the Michigan Gaming Control Board (“MGCB” or “Board”) released the August 2019 revenue figures for the three Detroit casinos – MGM Grand Detroit Casino, MotorCity Casino and Greektown Casino.
The three Detroit casinos reported $119.8 million in aggregate revenue for August 2019, a 0.5% decrease from the same month last year. The results were 0.7% above the monthly revenue in July 2019. The year-to-date aggregate revenue of $974.3 million was 0.7% higher than in the first eight months of 2018.
Please see the linked State of Michigan official financial report.
Revenue increased at MGM by 0.7% to $53 million. MotorCity recorded a revenue increase of 0.4% to $40 million. Greektown revenue decreased by 4.2% to $26.8 million compared with August 2018 results.
The August 2019 market shares for MGM Grand Detroit, MotorCity Casino and Greektown Casino were 44%, 34% and 22% respectively.
During August 2019, the three Detroit casinos paid $9.7 million in gaming taxes to the State of Michigan, compared with $9.8 million for the same month last year. The three casinos reported submitting $18.5 million in wagering taxes and development agreement payments to the City of Detroit in August. On Aug. 21, MGM Grand Detroit recorded $400 million in 2019 adjusted gross revenue (AGR), or net win, which triggers a $4 million payment and a 1 percent tax increase paid to the City of Detroit under the casino’s development agreement with the municipality. It is the soonest MGM Grand Detroit has reached the $400 million AGR mark since inception.
All three casinos are subject to a wagering tax of 19%, with 10.9% of this levy payable to the City of Detroit and 8.1% payable to the State of Michigan.
The figures released by the Board are the gross receipts less winnings paid to wagerers. The figures do not include: 1) any fees or other relevant city, state or federal taxes; 2) wages and benefits paid to casino employees; 3) payments to suppliers, services providers or vendors; nor 4) other normal business expenses.
In addition, the Michigan Gaming Control Board approved the renewal for all three Detroit casino licenses at the public meeting held on September 10.
