Detroit’s three casinos set a record for adjusted gross revenue last year, earning $1.454 billion in 2019. According to the state, that amount tops the record $1.444 billion set in 2018, or a $10 million increase in revenue. Those three casinos are MGM Grand Detroit, MotorCity Casino and the Greektown. It was record-breaking years for both MGM Grand Detroit and MotorCity Casino Hotel.
This record casino revenue is also good news for the state of Michigan and the city of Detroit. The state saw just over $117.8 million in gaming taxes in 2019. This number was $800,000 more than what they accrued the previous year. Detroit was paid $184.2 million in wagering taxes and development agreements, compared to $182.9 million in 2018.
Slices of the Billion-Dollar Pie
With nearly 43% market share in 2019, MGM Grand Detroit blazed the trail in the Motor City. The casino made $623.5 million in revenue, 0.7% more than its record the year prior, according to the Michigan Gaming Control Board.
MotorCity Casino Hotel took the second-largest portion at 34% market share. Its revenue was $493.6 million, which is about 0.8% higher than the record it had set in 2018. And while MotorCity was in second place, the property still experienced year-over-year revenue growth on its way to record turnover.
The rest was from Greektown, which had revenue of $337.2 million and covered about 23% of the market share. That was up 0.6% from the previous year but fell short of its $352.8 million record in 2011, when the three casinos achieved a then-record of $1.4 billion.
Each casino saw a year-over-year uptick in fourth quarter revenue in 2019. Greektown’s increased 3.4% to $87.1 million, MotorCity’s rose 2.9% to $123.4 million and MGM’s ticked up 0.2% to $157.2 million.
MGM Grand Detroit Opens ‘Moneyline’ as a Money Move
The MGM Grand opened their new sports lounge, Moneyline, last October to position themselves on the future of sports betting in the state.
They designed Moneyline Sports Lounge to look and feel like a sports book you would see in Las Vegas. They did this to bring the Vegas experience to Detroit, and while sports gaming isn’t an option right now, that may not be the case for much longer.
Michigan house representative Brandt Iden has been pushing for legislative changes in sports betting for years. His efforts will go a long way when Moneyline will be able to achieve its full potential, as a Sports Book taking wagers for gamblers legally.
This was another smart, forward-thinking move for the industry-leading MGM Grand, one that if coupled with the legalization of sports betting, will undoubtedly garner in an even higher increase of revenue for the year.
A Good Year on the Horizon, Possibly
Michigan approved sports betting last December, and online and mobile wagering are part of that package.
Industry observers are divided on exactly when the sports betting will be ready for public consumption in the state. Some of the more ambitious timelines indicate its availability in the spring, sometimes after March Madness. Some of the more realistic estimates indicate that it could likely take all of 2020 for Michigan to get the sports betting bill ready.
But if sports betting in the state becomes available sooner rather than later, then Michigan is expected to see over $19 million in annual revenue solely from sports wagering.