Many casinos around the United States have been open for weeks. Recently, revenue reports for different states have begun to surface. News has just surfaced that shows casino revenue in Detroit has dropped by an astounding 60% so far this year.
It’s a shocking reminder of how far this industry has dropped over the past couple of months. Many fear the country’s casino industry will never look the same as it did at the start of this year. Now is the perfect time to look at how much money the casinos in Detroit have been earning in 2020.
Let’s get into it!
Michigan’s Biggest Casinos Remain Shut Down
As we just mentioned, many casinos around the United States have recently begun to reopen. For many states, it was a necessity to get this industry up and running. Places like Las Vegas and Atlantic City rely almost entirely on their gambling and tourism industries.
At the start of July, lawmakers in Michigan announced plans to reopen casinos in the state. The plan was to get Detroit’s casinos operational within a week or two. Unfortunately, we’re coming close to the end of the month and there is still no word on when exactly these gaming venues will be allowed to reopen.
Cases of Covid-19 continue to increase around the country. State leaders are now beginning to roll back on their reopening plans. Michigan seems to be halting its plan to get its casinos open to the public.
This isn’t much of a surprise. Casinos, even with intense social distancing and health measures set in place, remain easy places for this new coronavirus to spread. This is an issue plaguing all casino destinations around the country.
Casino companies in this state are taking a major hit. All have lost an incredible amount of money this year. New reports have just surfaced that show exactly how much revenue has been lost here over the past six months.
Casino Revenue in Detroit Has Fallen 60% in 2020
Michigan is home to a large and successful casino industry. The majority of gambling venues in this state are Native American-run casinos. There are only three casinos, all of which are located near Detroit, that are commercially operated.
Obviously, all the casinos here are taking a massive hit due to the events taking place around the world. The commercial casinos, in particular, have been struggling immensely. New reports are now coming out that show casino revenue in Detroit has dropped by 60% so far this year.
All three of these venues are seeing much lower revenue figures when compared to 2019. Through six months of the year, these casinos have managed to bring in $299.2 million. That’s a major drop compared to the $734.5 these casinos made last year.
This is a tough blow for the state and the city of Detroit. Casinos here help to bring in a significant amount of money via taxes. Michigan earns 8.1% of a casino’s net winnings. Detroit earns 10.9%.
Casino revenue in Detroit is likely to remain low for all of this year. Interestingly, many of the Native American casinos in the state have recently started to operate again. All of them are finding it difficult to attract players, though.
Is sports betting going to help Michigan’s gambling industry survive?
US Sports Betting Industry Continues to Grow
It’s clear that the US casino industry is hurting right now. Some states have allowed their land-based gaming venues to begin operating again. Revenue from the industry is still down around the country.
Interestingly, sports betting is growing more popular than ever before. More than 20 states around the country have already legalized this form of gambling. Most of them have seen their sports betting revenue increase recently.
That’s a little surprising when you consider the fact that most sports leagues have been shut down. Fortunately, many of these leagues have finally begun to resume operations. The UFC, MLS, and PGA have all begun holding events again.
Some casino destinations are now relying on their sports gambling revenue more than ever before. Over in Atlantic City, revenue from online sports betting is still increasing. Casinos here, meanwhile, are having a difficult time drawing in players.
Casino revenue in Detroit is down nearly 60% this year. Some feel that Michigan will fast-track the plans to allow online sports betting to make up for these losses. We’ll continue offering updates on the revenue earnings here over the next few months!
Do you think the casinos in Detroit should be allowed to reopen? Let us know in the comments section below!