Detroit’s bustling betting scene is facing a unique set of challenges, with strikes casting a shadow over the city’s three major casinos—MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown. As the strike’s impact reverberates through the industry, it’s essential to unravel the intricacies of Detroit’s betting market and understand how these challenges are reshaping the landscape.
October’s Revenue Snapshot
In October, Detroit’s trio of casinos collectively reported an aggregate revenue (AGR) of $82.8 million. This comprises $81.7 million from table games and slot machines and an additional $1.1 million from retail sports betting. MGM Grand Detroit led the market share at 46%, followed by MotorCity Casino with 31%, and Hollywood Casino at Greektown with 23%.
However, a closer look reveals a notable decline compared to the previous year, with a 19.5% drop from the $102.8 million earned in October 2022. The impact of the ongoing strikes is evident, contributing to an 18.5% decrease from the $101.6 million recorded just a month prior, in September 2023.
Strike’s Toll on Gaming Revenue
The strikes have taken a toll on gaming revenue, with a significant 18.9% decline in revenue from table games and slot machines compared to October 2022. This trend continues from the previous month, with October 2023 seeing an 18.3% dip in revenue compared to September.
From January 1st to September 30th, there’s been a 1.3% decrease in revenue from these sources compared to the same period in the previous year. This downward trajectory paints a picture of the challenges faced by Detroit’s casinos.
Casino-Specific Revenue Analysis
Breaking down the numbers for individual casinos in October 2023 compared to the same month in 2022 reveals a consistent reduction in monthly gaming revenue. MGM’s earnings fell by 19.6% to $37.3 million, MotorCity experienced a 22.8% drop to $25 million, and Hollywood Casino at Greektown saw an 11.7% decrease to $19.4 million.
Contributing to the state’s coffers, the three casinos paid $6.6 million in gaming taxes in October, a decrease compared to the $8.2 million paid in the same month last year. Additionally, they contributed $10.1 million in betting taxes and development agreement payments to the city of Detroit.
Sports Betting Hits a Snag
The sports betting sector has not been immune to the challenges either. The casinos reported an $18.1 million handle in retail sports betting, resulting in a total gross revenue of $1.1 million for October. However, Qualified Adjusted Gross Receipts (QAGR) from retail betting experienced a sharp decline of 46.3% compared to October 2022 and a drop of 28.6% compared to September 2023.
Breaking down individual QAGR numbers for October, MGM reported $365,705, MotorCity had $669,028, and Hollywood Casino at Greektown recorded $90,430. These figures underscore the challenges faced by the retail sports betting sector amid the ongoing strikes.
Digital Campaign and Sports Betting Boycott
Adding another layer to the complexities, Detroit casino unions have initiated a digital advertising campaign urging a boycott of popular sports betting platforms—FanDuel (MotorCity Casino), ESPN Bet, Hollywood iCasino (Hollywood at Greektown), and BetMGM (MGM Grand Detroit). This campaign encourages sports fans to refrain from placing bets until there is a resolution on worker wages and benefits and until the ongoing strike is resolved.
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