It is anticipated that Michigan retail casinos will maintain their stability in 2022.
The reports on tribal casino gaming and Detroit casino gaming, which are accessible to the public, indicate that the year was strikingly similar to 2021.
On the other hand, upon closer examination, it is evident that tribal casinos have successfully recovered from the detrimental effects of the COVID-19 pandemic, whereas Detroit’s three casinos cannot claim the same achievement.
In 2022, tribal casinos in Michigan have experienced a modest increase in gaming revenue compared to 2019. However, Detroit’s retail casinos continue to exhibit a significant decline of nearly 14% from their revenue in 2019.
Unlike the Detroit casinos, tribal casinos are not obligated to disclose their complete revenue to the public.
According to a statement by the Michigan Gaming Control Board, the sole publicly disclosed figures are the 2% tax payments that each tribe contributes from their annual Class III machine revenue. However, various factors can influence these payments and overall net win totals, and these factors may vary among different tribes.
Despite that, by analyzing the information disclosed by the tribes, we can gain valuable insights into the fluctuating nature of these payments and assess the performance of the tribal casinos over time.
Michigan tribal casinos rebounding better than Detroit Casinos since 2019
The 2021 to 2022 revenue reporting for tribal casinos and the Detroit casinos is where they share similarities.
In 2021, there was a 2.2% decrease in year-over-year reporting for tribal casinos, whereas the three Detroit casinos experienced a 0.8% decline.
The tribal casinos and the Detroit casinos have experienced significant differences in their respective positions, particularly in relation to the pre-pandemic era of 2019.
In 2022, tribal casinos experienced a marginal growth of 1.1% compared to 2019, indicating a slight improvement for the collective.
Tribe | 2019 payment | 2021 payment | 2022 payment | Change 2021-22 | Change 2019-22 |
---|---|---|---|---|---|
Bay Mills | $429,302 | $340,688 | $329,502 | -3.3% | -23.3% |
Grand Traverse Band | $1,1538,689 | $1,383794 | $1,344,666 | -2.8% | -12.6% |
Gun Lake | $4,686,816 | $4,243,082 | $4,272,440 | +0.7% | -8.8% |
Hannahville | $1,054,439 | $1,122,372 | $1,192,758 | +6.3% | +13.1% |
Keweenaw Bay | $577,395 | $754,687 | $725,721 | -3.8% | +25.7% |
Lac Vieux Desert Band | $258,885 | $291,596 | $273,875 | -6.1% | +5.8% |
Little River Band | $1,742,356 | $1,463,331 | $1,498,279 | +2.4% | -14.0% |
Little Traverse Bay Bands | $1,104,567 | $1,150,137 | $1,112,296 | -3.3% | -4.0% |
Nottawaseppi Huron Band | $5,855,558 | $6,397,613 | $6,196,103 | -3.2% | +5.8% |
Pokagon Band | $5,731,527 | $6,120,250 | $5,578,183 | -8.9% | -2.7% |
Saginaw Chippewa | $6,120,314 | $7,023,782 | $6,916,589 | -1.5% | +13.0% |
Sault Ste. Marie | $1,385,022 | $1,214,061 | $1,364,104 | +12.4% | -1.5% |
Totals | $30,484,870 | $31,505,393 | $30,804,516 | -2.2% | +1.1% |
Contrary to that, the three Detroit casinos have experienced a 13.6% decline in revenue for their slots and table games since 2019.
Tribe | 2019 revenue | 2021 revenue | 2022 revenue | Change 2021-22 | Change 2019-22 |
---|---|---|---|---|---|
MGM Grand Detroit | $623,515,060 | $554,029,734 | $599,997,956 | +8.3% | -3.8% |
MotorCity Casino | $493,566,673 | $438,271,651 | $396,520,768 | -9.5% | -19.7% |
Hollywood Casino at Greektown |
$337,192,961 | $274,461,146 | $260,456,017 | -5.1% | -22.8% |
Totals | $1,454,274,694 | 1,266,762,531 | $1,256,974,742 | -0.8% | -13.6% |
Why are tribal casinos outperforming Detroit casinos?
Upon analyzing the data, the primary query that arises is: “What is the reason behind the struggle of Detroit casinos to regain their pre-pandemic levels, in contrast to tribal casinos that have already exceeded those levels?”
Although there might not be a straightforward solution, there exists certain data that provides support for these present findings.
Detroit tourism continuing to feel pandemic impact
Visitor spending each year, for each county throughout the state of Michigan, is tracked by the Michigan Economic Development Corporation.
The impact of the pandemic on tourism in the state was undoubtedly significant in 2020. As a result, there was a substantial surge in tourism in 2021, largely driven by people’s strong desire to venture out of their homes.
In 2021, the Detroit Metro Region experienced the least amount of tourism growth compared to all other areas in the state.
In 2021, the combined visitor spending of Macomb County, Oakland County, and Wayne County amounted to $9.1 billion, showcasing a significant increase from the previous year’s $7.3 billion. However, this 24.8% rise was found to be the least substantial among all regions in the state.
In Wayne County, the location of the three Detroit casinos, visitor spending witnessed a notable surge, rising from $4.2 billion in 2020 to $5.5 billion in 2021.
The significant difference is that the totals are considerably lower than they were before the pandemic. Wayne County witnessed a much higher level of visitor spending in the years leading up to 2020.
- 2016: $7.1 billion
- 2017: $7.4 billion
- 2018: $7.7 billion
- 2019: $7.8 billion
Visitor spending in Wayne County experienced a nearly 30% decline from 2019 to 2021.
The numbers for 2022 will not be accessible until the summer. However, it is anticipated that Detroit will persistently fall short of the visitor spending levels achieved before 2020. The decline in the number of people entering the city also corresponds to a decrease in the number of individuals visiting the three Detroit casinos.
Tourism up in tribal casino locations
Unlike Detroit, tribal casino locations are not experiencing the same tourism problems.
Actually, the majority of them have witnessed a rise in visitor spending in comparison to the figures recorded in 2019.
Fifteen out of the twenty counties housing Michigan’s 23 tribal casinos experienced increased visitor spending in 2021 compared to pre-pandemic times. Although this can be primarily attributed to the presence of popular outdoor tourist destinations in most of these counties, the expanded number of individuals willing to spend money undoubtedly contributes to the prosperity of the local casinos.
Take a glance at the top 10 counties that have experienced the most significant surge.
County Location (Casino in county) |
2019 Visitor Spending | 2021 Visitor Spending | Percentage Increase |
---|---|---|---|
Van Buren County (Four Winds Hartford) |
$131.5 million | $165.1 million | 25.6% |
Schoolcraft County (Kewadin Manistique) |
$47.2 million | $56.2 million | 19.1% |
Alger County (Kewadin Christmas) |
$46.0 million | $52.2 million | 13.5% |
Emmet County (Odawa Petoskey) |
$413.8 million | $493.8 million | 13.3% |
Mackinac County (Odawa Mackinac City & Kewadin Hessel & Kewadin St. Ignace) |
$241.4 million | $265.5 million | 10.0% |
Calhoun County (FireKeepers) |
$320.3 million | $349.7 million | 9.2% |
Marquette County (Ojibwa Marquette) |
$209.8 million | $228 million | 8.8% |
Gogebic County (Northern Waters) |
$71.5 million | $75.4 million | 5.5% |
Leelanau County (Leelanau Sands) |
$128.7 million | $134.6 million | 4.6% |
Isabella County (Soaring Eagle) |
$252.9 million | $263.7 million | 4.3% |
Tribal casinos more appealing to larger groups?
Although Detroit offers numerous attractions beyond its casinos, smaller counties housing tribal casinos lack the same abundance of alternative entertainment options.
When conversing with the administrators of the Facebook Group “What Happens At The Casino Stays At The Casino,” it was revealed that the tribal casinos are slightly more accommodating towards groups.
Group creator Tim Stevens mentioned that they had previously visited MotorCity Casino, where they were offered a prepaid amount of approximately $15. However, the casino staff insisted on them arriving by bus, which was inconvenient for the group as they were from various locations. Despite their refusal to use a bus, the casino provided them with the $15 and nothing more.
As of now, there has been no response received from MotorCity Casino despite multiple attempts to contact them.
The Facebook group has established strong bonds with tribal casinos like Gun Lake Casino, FireKeepers Casino, Little River Casino, and Soaring Eagle Casino.
Group administrator Maria Gonzales stated that, in her opinion, the members of the group desire to visit a casino where they can feel at ease and be treated like royalty. She emphasized that their priority is not solely the act of traveling, rather they simply wish to feel valued and exceptional. According to Gonzales, casinos that make an extra effort to provide this experience will leave a stronger and more enduring impact.
What are Detroit casinos doing to bridge the gap?
Without a doubt, the pandemic has presented challenges for all retail casinos.
The industry experienced an impact across all its facets, ranging from gaming to food services to hospitality.
The revenue figures of the Detroit casinos can also serve as indicators of the challenges faced by other regions.
In terms of revenue performance, MGM Grand Detroit stands out as the only casino in Detroit that has shown promising results in 2022. The casino experienced a notable 8.3% growth in year-over-year revenue when compared to 2021, and its revenue figures are currently slightly less than 4% lower than those of 2019.
In 2022, MGM Grand implemented a significant change by introducing two indoor smoking sections. These areas became operational towards the end of December. However, the revenue for the first quarter of 2025 ($154.7 million) witnessed a 2.6% increase compared to the first quarter of 2022 ($150.8 million).
In an effort to boost their dwindling revenue, Hollywood Casino at Greektown recently introduced indoor smoking on its second floor of gaming.
MotorCity Casino has significantly enhanced its entertainment lineup over the last year and a half, in addition to being the only casino in Detroit to provide a buffet option.
In terms of Q1 gaming revenue growth for 2025, Hollywood Casino at Greektown is leading the pack with an impressive 11.5% increase compared to the same period last year. On the other hand, MotorCity Casino has experienced a marginal decrease of less than 1%.
As these casinos strive to resemble the ones that customers fondly recall from 2019, it may be the key to overcoming the challenges posed by the aftermath of the pandemic.