Detroit Casinos Report 7% Drop In Retail Revenue During Q3 Compared To 2021

To date, six US states have legalized online casino gambling (or iGaming) since PASPA was ruled unconstitutional in 2018, Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. Since then, many states have been hesitant to legalize the activity, fearing the effects online gambling would have on established, traditional retail casinos in their respective states. When Michigan legalized sports wagering and online gambling, some state legislatures and casino operators held the same opinion. However, with the combined revenues generated from iGaming and retail gaming, any revenues lost in that retail-specific vertical are usually displaced, thanks to the growing iGaming and sports betting industry.

With that being said, the three retail casinos in Detroit reported a 7% decrease in revenue for Q3 for in-person wagering. We don’t have iGaming revenue numbers for Q3 yet, so it’s hard to determine whether online casino gambling helped make up that gap, but its likely iGaming helped offset that 7% decrease.

A closer look at September

During September, the three retail casino locations reported total revenues of $103.4 million, a 2.65% decrease from August revenue numbers of $106.14 million. BetMGM continues to lead the pack, representing 48% of the total retail revenue. MotorCity and Hollywood Casino at Greektown accounted for 31% and 21% of the total retail revenue, respectively. 

Table games and slots accounted for $100.8 million of the revenue generated last month. Retail sports betting accounted for the remaining $2.6 million in revenue. 

In terms of tax revenue, retail gambling operations from the three Detroit casinos resulted in operators paying $8.2 million in tax revenue to the State of Michigan and $12.5 million paid to the City of Detroit. 

September retail gambling numbers at a glance:

• September retail revenue: $103.4 million
• August retail revenue: $106.14 million
• 2.65% decrease month over month
• State tax revenue generated during September: $8.2 million
• City of Detroit tax revenue generated during September: $12.5 million

Third-quarter table games and slots revenue numbers

The Michigan Gaming Control Board (MGCB) reported that Q3 of 2022 saw the three Detroit retail casinos, BetMGM, MotorCity, and Hollywood Casino at Greektown, all experience a drop in revenue compared to Q3 of last year. In terms of table games and slots, the three retail locations reported a collective decline of about 7% compared to Q3 2021. BetMGM reported table game and slot revenue numbers of $150 million, down 2.9% compared to last year. MotorCity reported $98.5 million, down 11.7% year over year. Hollywood Casino at Greektown experienced an 8.8% loss compared to last year, reporting $62.8 million in revenue.

Retail sports wagering numbers

In terms of retail sports betting, operators report their revenue in the form of qualified adjusted gross receipts (QAGR). It seems more and more players are utilizing online sportsbooks to place their wagers this year. In September 2021, the sports betting QAGR for the three retail casinos reached $3.5 million. September 2022 ended with operators reporting $2.6 million in sports betting QAGR, a decrease of 24.9% compared to September 2021.

Unsurprisingly, sports wagering QAGR was up 56.3% month over month (thanks to the start of the NFL season). August brought in just $1.7 million in retail sports wagering. 

The total sports betting handle for September 2022 was $18,580,437, meaning the books held about 14.2%. 

September QAGR by property:

• BetMGM: $1,007,935 
• MotorCity: $822,534
• Hollywood Casino at Greektown: $768,912

Year-to-date QAGR by property:

• BetMGM: $4 million
• MotorCity: $3.6 million
• Hollywood Casino at Greektown: $5.7 million

Tax revenue September 2021 vs. September 2022

During September 2022, the three Detroit casinos generated $98,257 in state tax revenue from sports betting. The City of Detroit received $120,091 last month from sports betting.

State tax revenue from retail sports wagering dropped 33% compared to September 2021, when operators brought in $130,885 in state tax revenue. 

Mac Daniel is a Michigan native and freelance writer for PlayOnlineCasino and PlayOnlineSportsBetting. He has experience writing about a wide variety of topics, including healthcare, tourism, non-profit organizations, and most recently casino and sportsbetting news. To check out more of his work, visit: playonlinemichigan.com