Detroit casino profits drop nearly 3% to $1.22 billion in 2023
Detroit casinos ended their two-year pandemic recovery in 2023 as gross gaming revenue (GGR) declined across its three brick-and-mortar operations.
The Michigan Gaming Control Board announced Tuesday that December winnings at Detroit's MGM Grand, Motor City Casino Hotel and Greektown Hollywood Casino totaled $111.4 million. Revenue includes GGR for casino land-based slots and table games, but does not include Sports Betting or iGaming.
December's 2.9% year-over-year increase was the second-best month for city gaming in 2023, behind only March, when total gaming revenue was $117.8 million. But December's GGR gift wasn't enough to turn a year-end gaming revenue report into a positive one.
Detroit casino profits from slot machines and table games totaled about $1.227 billion in 2023, based on the 12 months on the books. Total gaming revenue last year fell 2.3% year-over-year, compared with an estimated $1.256 billion won by the three major commercial casinos in 2022.
MGM maintains market leadership
MGM Resorts' Detroit casino was once again the top performer in the three-casino market. The MGM Grand in Detroit won $564 million from veteran gamblers last year, accounting for 46 percent of the local gaming industry.
MGM Grand Detroit 2023 profits fell 6% from last year, and the casino had nearly $600 million in revenue in 2022. The casino also lost some market share as it generated $599.9 million in GGR last year, accounting for nearly 48% of the city's $1.256 billion in total transportation revenue.
MotorCity also lost market share in 2023. The casino is owned by Ilitch Holdings. Ilitch Holdings is the investment vehicle of Mike and his widow, Marian Ilitch, founders of the Little Caesars chain and MLB owner of Detroit The owners of the Detroit Tigers and NHL's Detroit Red Wings won more than $373.5 million from gamblers last year.
MotorCity's market share was 30.5%, down 1% from 2022, when casinos dominated 31.5% of the local industry.
Market share losses from MGM and Motor City were offset by the Hollywood Casino in Greektown. Casinos operated by Penn Entertainment won $285.2 million through its slot machines and table games, capturing 23 percent of the market. By 2022, this number will grow by 20.7%.
Penn acquired the operating rights to Greektown in May 2019 from Jack Entertainment, the casino company controlled by Detroit billionaire Dan Gilbert of Rocket Mortgage. Penn paid $300 million for the operating rights, while Vici Properties, a real estate investment trust owned by Caesars Entertainment, paid $700 million for the properties.
Payne pays Vesey about $56 million in annual rent. Penn renamed Greektown "Greektown Hollywood" in May 2022 to better align with the company's portfolio of Hollywood-branded properties.
iGaming, sports betting to make up for losses
Michigan casinos easily offset last year's losses from brick-and-mortar GGR through their internet gaming platforms and retail and online sportsbooks.
Last year, the casino's retail sportsbook won $14 million from bettors. Online sports betting revenue for December has not yet been released. But from January to November, the casino's online sports betting partners won $238 million.
FanDuel, MotorCity’s online sports betting partner, dominates the internet betting space. FanDuel accounted for $164.5 million in online sports betting profits.
iGaming continues to grow in 2023, with GGR for online slots and table games exceeding $940 million. BetMGM, the iGaming partner of the MGM Grand in Detroit, leads the online casino market with $539.3 million in GGR.
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Source: www.casino.org
