.
In 2017, Michigan’s three commercial casinos reported a total gaming revenue of $1.4 billion, as per the latest filings from the Michigan Gaming Control Board. This figure reflected a slight increase of 1.1 percent compared to the $1.385 billion generated by the three casinos in 2016.
In 2017, the majority of the casinos’ revenue, specifically 81 percent, came from slot machines. The revenue generated from slot machines surpassed that of table games by over four times, with a total of $1.14 billion compared to $260 million.
The revenue figures provided do not encompass the earnings generated by Michigan’s 23 tribal casinos. The MGCB solely reports on the revenue derived from the three commercial casinos located in the Detroit area.
- MGM Grand Detroit
- MotorCity Casino
- Greektown Casino
Casino-by-casino revenue
Overall, the year was relatively stable for all three gaming operators. While none of them experienced a year-over-year decline, MGM Grand Detroit came close to it. However, the increases they achieved were not particularly remarkable.
Take a glance at the reported revenue of every casino property.
- In 2017, MGM Grand Detroit’s revenue remained unchanged compared to the previous year. The leading casino in the city generated a total revenue of $592.2 million.
- MotorCity Casino experienced a successful year, witnessing a 2.3 percent rise in revenue, reaching a total of $478.6 million.
- Greektown Casino experienced a 1.3 percent increase in revenue, totaling $329.7 million.
The state and city get their cuts
Out of the total amount of $1.4 billion, an impressive $290 million was allocated to the state of Michigan and the city of Detroit, accounting for over 20 percent.
The state received a total of $113 million in gaming taxes from the three Detroit casinos, as a combined contribution from all of them.
Besides fulfilling their state obligations, the three casinos also allocate a substantial portion of their revenue to Detroit. The taxes and development payments made by these casinos in 2017 totaled $177 million.
What if they offered online gambling?
Regardless of its size, a Y/Y increase is consistently positive. However, the significant impact on Michigan’s commercial casino industry lies in the revenue it fails to generate.
Over the past two years, multiple endeavors by Michigan legislators to legalize online gambling have been thwarted on every occasion.
In 2017, New Jersey online casinos successfully generated close to $250 million in revenue, and surprisingly, this did not negatively affect the revenue of traditional land-based casinos. In fact, land-based casino revenue in Atlantic City, which had been declining for the past decade, witnessed a consecutive increase for the second year in a row.
If Michigan had a comparable population and tax rates as New Jersey, it could anticipate comparable outcomes. If Michigan’s online gambling industry had generated the same revenue figures as New Jersey’s in 2017, the three Detroit casinos would have witnessed a substantial 16 percent year-over-year increase in revenue, instead of the mere 1.1 percent they actually observed.
Despite the possibility of the state witnessing a more moderate income from online gambling (New Jersey generated $123 million during its initial year), it would still indicate a nine percent year-over-year increase.