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Michiganders can always rely on a few certainties: death, taxes, and a consistent decline in casino revenue in Detroit during the month of June.
The report from the Michigan Gaming Control Board for the sixth month of this year confirms the well-established pattern that casino patrons are highly predictable, if not more so.
June Detroit casino revenue in detail
In June 2019, the combined adjusted gross receipts from all three Detroit casinos amounted to $117.5 million. Here’s the breakdown:
- MGM Grand:$50.7 million
- Motor City Casino:$39.9 million
- Greektown Casino: $26.9 million
While it is not an insignificant amount, it falls short of being an impressive earning for the three Detroit casinos. In fact, it is the lowest amount recorded in the last three months.
Compared to the casino revenue from May 2019, there has been a decrease of 6.6% in the total.
MGM Grand experienced the largest decrease in total dollars, with a drop of approximately $3.7 million or 6.8% compared to the previous month. On the other hand, Greektown witnessed the biggest percentage decrease, with a decline of nearly 8.7% or approximately $2.55 million.
Compared to the previous year, there has been a decrease of almost 1.4% in total revenue. In June 2018, the three Detroit casinos generated $119.1 million. Despite this slight decline, historical data suggests that the casino revenue in June is usually comparable to the optimistic Super Bowl odds for the Detroit Lions this year.
Beware the ides of … June?
Had a casino executive been the author of Julius Caesar instead of William Shakespeare, they may have declared June as a month of misfortune rather than March.
March has consistently proven to be the most successful month for Detroit casinos over the last five years. Based on the current trend, it appears that 2019 will follow suit.
June is a completely different tale, resembling the moment when Caesar was metaphorically and physically betrayed on the Senate stairs. In the past five years, June hasn’t been the most dreadful month for Detroit casinos. Nevertheless, it has witnessed a decline from previous years’ peak performance.
When considering the month’s context, it becomes evident that Michigan’s casinos are not unique in their experiences. Similarly, casinos across the nation face similar challenges during the summer months.
Why June casino revenues often disappoint
During the summer months, a higher number of customers, unburdened by school obligations, are inclined to go on vacations and organize various daily activities.
In comparison to March, the current weather is significantly more pleasant. The pleasant climate attracts people to engage in outdoor activities such as picnics and other leisurely pursuits. Instead of gambling their luck at a blackjack table, many individuals are inclined to try their hand at fishing in hopes of catching real fish.
This leads to disposable income being spent on gambling while the children are in school, instead of being used for other purposes such as purchasing airplane tickets in June. While other factors are also involved, this is a significant explanation for why June is a slow month.
Following a report indicating that Michigan’s commercial casinos contributed a substantial $2.2 billion to the School Aid Fund in the past two decades, the subsequent underwhelming revenue report feels rather anticlimactic.
June’s performance offers reassurance in the predictability of casino revenue, implying that better months lie ahead for Detroit casinos this year.
