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Following over a year of enduring COVID restrictions, it is highly probable that the retail casino industry was anticipating a period of uninterrupted operations for several years.
Regrettably, the increase in gas prices and inflation rates has begun to strain the financial situation for some individuals.
Operators are aware of the upcoming challenge they face as the gas issues continue without any apparent resolution, and there is a possibility of even higher prices in the future.
Given that online casinos are now legally available in the state, will this recent problem attract a greater number of individuals to utilize their apps?
Michigan gas prices well over $5 per gallon
According to AAA, as of Wednesday, the average price of regular fuel in Michigan stood at $5.13 per gallon, while diesel prices were recorded at $5.96 per gallon.
Although it has slightly dropped from $5.21 a week ago, it remains a significant increase compared to the $4.57 from a month ago. Clearly, it represents a substantial leap from $3.12 a year ago.
Michigan’s gas prices are slightly above the national average of $4.95 per gallon.
Certain counties that house casinos have elevated statistics compared to the average of the state.
- The cost per gallon in Mackinac County is $5.24.
- The price for a gallon of gas in Chippewa County is $5.24.
- The cost per gallon in Wayne County is $5.22.
- The price per gallon in Schoolcraft County is $5.17.
- The cost per gallon in Manistee County is $5.15.
- In Marquette County, the price of gasoline is $5.14 per gallon.
Regular retail casino players cutting back
Even the most dedicated casino enthusiasts are reconsidering their plans due to the increasing gas prices.
After contacting the well-known Facebook Group, What Happens at the Casino Stays at the Casino, numerous members expressed their intention to reduce their visits to retail stores.
While a few pointed out the increase in gas prices, others brought up the current surge in prices across various commodities.
Some individuals expressed their intention to remain frequent visitors to the casinos, but acknowledged that they would reduce their expenditures to compensate for the increased cost of gasoline.
The group often organizes collective visits to the casino, posing a potential risk for the retail sites in terms of financial losses.
In terms of embracing online casinos, retail players exhibit remarkable loyalty. They prioritize supporting physical establishments and place greater trust in familiar machines, rather than embracing the new technological advancements being presented to them.
What casinos are doing to combat gas prices
Casino operators must be concerned about the increasing gas prices, irrespective of the statistics.
They refuse to remain inactive and allow their customers to choose to stay at home.
Gun Lake Casino hosted a Gas Card Giveaway exclusively for their VIP Guests, where gas cards ranging from $50-250 in value were distributed. In addition, invited guests were granted an extra $25 gas card for every 1,000 Rewards Points earned. Moreover, Gun Lake Casino provides gas discount incentives to its rewards members.
In an effort to alleviate the gas blues, Leelanau Sands Casino and Turtle Creek Casino have launched summer promotions.
During the recent Father’s Day Slot Tournaments, participants received $10,000 in cash and prizes in addition to being awarded $25 gas cards for winning each round.
In the upcoming promotions at both casinos, there will be exciting prizes up for grabs, including a six-person golf cart and a brand new 2022 Vespa Primavera.
In addition, players can still choose to explore the different bus trip alternatives offered in the state. This grants them the opportunity to enjoy a more affordable journey to the casino in the company of others, occasionally accompanied by gaming or meal vouchers.
Although the prices of those options may also begin to rise, they can still be more cost-effective compared to filling up the tank on your own.
What gas price increases mean for retail and online casinos
Michigan gamblers are fortunate to have the casino brought to them if there is a decrease in the number of people visiting retail casinos.
The extent to which internet gaming is benefiting from the increase in gas prices and inflation remains uncertain. The revenue report for May indicated yet another successful month for the state in terms of online casino revenue. It has emerged as a significant source of tax revenue for the state.
Although revenue reports for Michigan’s tribal-based retail casinos are not available, the monthly numbers for the three Detroit casinos are provided.
In May, there was a decline of over $10 million in revenue compared to April for all three locations combined. However, the total revenue of $106.3 million is not significantly lower than May 2021. Additionally, it surpasses the revenue totals of both January and February.
The revenue report for June, scheduled to be released in mid-July, is expected to offer a more comprehensive analysis of the impact on both retail and online casinos.
