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In 2020, the slot machine revenue of Michigan tribal casinos experienced a significant decline of 19.8%. The coronavirus pandemic directly impacted the primary source of funding for the state’s twelve federally recognized tribes.
Despite the closure of all 23 tribal casinos for several weeks and the imposition of restrictions for the majority of the year, slot machines were still able to generate revenue exceeding $1.22 billion.
The drop experienced by Detroit’s casinos is far more significant compared to that one. According to the Michigan Gaming Control Board’s report in January, revenue from table games and slot machines at Greektown Casino, MGM Grand Detroit, and MotorCity Casino plummeted by 57.3% in 2020.
In contrast to the Detroit trio, Michigan tribal casinos are exempt from the strict regulations imposed by Michigan Gov. Gretchen Whitmer, which were considered some of the most stringent in the United States.
The recently released MGCB’s annual Indian Gaming report provides the source of the tribal slot machine numbers. According to the report, the 12 tribes distributed $24.4 million to local units of state government and local revenue sharing boards as 2% slot machine revenue share payments. This distribution is stipulated in their compacts with the state.
The report fails to provide information on the revenue generated from tribal table games. Due to the stricter pandemic measures, the impact on these games may be more significant compared to slots.
Snapshot: FireKeepers Casino lost $46.8 million in slot revenue
During the pandemic, FireKeepers Casino in Battle Creek emerged as a triumphant instance of a Michigan tribal casino.
In March 2020, FireKeepers, similar to the other 25 casinos in Michigan, closed its doors.
Despite Governor Whitmer’s decision to keep Detroit’s commercial casinos closed until early August, FireKeepers casino opened on June 1. However, certain amenities such as valet parking, buffets, bingo, and the poker room remained closed.
During a recent webinar hosted by the National Indian Gaming Association, Kathy George, the CEO of FireKeepers, shared some notable achievements from a challenging year. She highlighted the successful rehiring of all willing and capable employees following the closure and mentioned that the casino disbursed over $10 million in wages and benefits throughout the 12-week shutdown period.
“We have successfully retained all of our employees, including those previously working in the buffet, valet, and poker departments,” George stated. “We have strategically reassigned them to various roles across the property.”
According to George, FireKeepers currently has approximately 3,000 slot machines available. However, due to social distancing measures, many of these had to be closed down. Some of these machines were relocated to the poker and bingo rooms, resulting in around 2,100 machines currently in operation. Notably, FireKeepers became the first tribal casino in Michigan to introduce a retail sportsbook on June 22.
In 2019, the casino generated a total of $292.8 million in slot revenue. However, in 2020, this amount decreased by 16.0% to $245.9 million. Despite the decline, the casino managed to allocate $4.9 million for its annual 2% contributions to various local organizations, including Harper Creek Community Schools, the Calhoun County Road Commission, Willard Library, Kellogg Community College, and the city of Battle Creek. Additionally, the tribe made a payment of $10.8 million to the state.
FireKeepers held a job fair last week, where they sought additional employees for the reopening of the poker room on May 1, 2021. In certain instances, they even provided immediate employment opportunities to interested candidates.
Separate tribal casino payments to state down 47.1%
The Michigan Gaming Control Board (MGCB) has no jurisdiction over Michigan tribal casinos as they operate on sovereign lands. This report provides the most extensive and detailed overview available regarding the impact of the pandemic on tribal casinos.
Nevertheless, the regulator provides an annual report on the 2% revenue sharing payments. In addition, the MGCB disclosed that tribes made payments amounting to $28.9 million to either the Michigan Strategic Fund or the Michigan Economic Development Corporation. These payments were made based on distinct requirements outlined in the compacts.
In comparison to 2019, when the tribes contributed $54.7 million to state funds, the latest amount witnessed a decrease of 47.1%. It’s important to note that the payment amounts differ among tribes, as they are determined by their respective compacts.
However, a more distinct image arises from the 2% payments, as they remain consistent across all tribes in Michigan.
Soaring Eagle, Island Resort kept up revenue best
Once again, the Saginaw Chippewa Indian Tribe has emerged as the leader among Michigan tribal casinos in slot wins, showcasing their dominance with their operations at Soaring Eagle Casino Resort in Mount Pleasant and Saganing Eagles Landing in Standish.
In 2020, the tribe earned $264.7 million from slot machines, indicating a 13.5% decline compared to the previous year’s figures.
The Hannahville Indian Community, responsible for the Island Resort and Casino in Harris, experienced the second-smallest decrease in revenue among the 12 tribes, with only an 11.8% drop.
After approximately two months of closure, the tribe took the lead by reopening its casino in mid-May.
Following a postponed earlier attempt, the reopening finally took place. Michigan Attorney General Dana Nessel issued threats of penalties in early May towards individuals living off-reservation, including both patrons and employees.
In the revenue rankings, the Hannahville tribe surpassed the Little Traverse Bay Bands of Odawa Indians, who operate two Odawa Casinos in northwest Michigan, to claim the eighth position.
The 12 tribes experienced no other changes in rankings except for that one shift.
Ojibwa, Bay Mills casinos suffer worst losses
The Keweenaw Bay Indian Community, responsible for managing Ojibwa Casinos in Baraga and Marquette of the Upper Peninsula, experienced a significant decline in slot revenue. Their earnings plummeted by 48.1% to a total of $14.2 million.
Following that, the Bay Mills Indian Community experienced a significant decline in slot revenue, with losses amounting to $9.9 million, marking a 46.3% decrease compared to the previous year’s figures.
For the second time this winter, the Bay Mills tribe has decided to temporarily close its main Bay Mills Casino in Brimley. Additionally, the tribe’s smaller casino, Kings Club Casino, located just 2 miles away, shut down during the initial outbreak of the pandemic in March and has yet to resume operations.
In total, the Upper Peninsula tribes experienced a decline of 24.5% in slot revenue, amounting to $138.8 million. Similarly, the Lower Peninsula tribes saw a 19.2% decrease, resulting in a total of $1.08 billion.
In the history of reporting, the 19.8% decrease in slot machine revenue marked the initial occurrence of a double-digit decline in 11 years. Over this period, the annual revenue had experienced a growth of 16.4%, ascending from $1.31 billion in 2010 to $1.52 billion in 2019.
The MGCB has the additional responsibility of regulating online sports betting and internet gaming for tribal entities. This includes overseeing online casinos and poker, which involve wagers placed across the state on land that is not designated as reservation land.
This week, we can anticipate the online gambling totals from Michigan, which is already recognized as one of the country’s most thriving markets.
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