Three land-based casinos in Detroit are yet to collect better revenues as they did below the coronavirus pandemic. Greektown, MotorCity, and MGM Grand Detroit received $109.7 million in May from their gaming floor. However, this amount was $16.1 million less than the collected revenue in May 2019.
There is no revenue data for May 2020, as the three casinos were closed due to the coronavirus pandemic. However, these casinos collected $125.8 million in May 2019, which is 13 percent better than last month.
MGM Grand Detroit recorded the highest revenue among the three brick-and-mortar gaming facilities. It has 42 percent of the market share with $46.1 million in May 2021 revenue. MotorCity had the second-highest revenue of $39.2 million, while Greektown took third place with $23.6 million.
Last month’s revenue comprises of money won from table games, slot machines, and sportsbooks. The casino side of gaming won $107.94 million, while sportsbooks won the remaining $1.75 million.
The sportsbooks received $20.2 million of sports bets placed. This was 17 percent lower than April’s bet amount.
Casinos have to share 19 percent of their revenue with the state (Michigan) and city (Detroit) by paying taxes. Thus, Detroit got 10.9 percent, which is a sum of $12.8 million.
On the other hand, the state got 8.1 percent which is a total of $8.7 million. The revenue paid to the state and city includes the agreed remit each casino has to pay each month.
iGaming Expecting to Increase the Revenue Collected in May
Online gaming and online sportsbooks play a major role in helping commercial casinos recover from the coronavirus pandemic. In that regard, the Michigan gaming control board is slated to release gross gaming revenue later this week.
When it does, we will get statistics on how online gaming and mobile sports wagering did in May 2021. This will help identify whether the GGR is more than the $125.8 million collected in May 2019.
In April 2021, land-based casinos earned a GGR of $108.9 million. However, compared to April 2019 revenue of $125.1 million, this year’s land-based revenue went down by 13 percent.
With online casinos and mobile sports wagering, April 2021 revenue increased to $224.1 million. $94.8 million was collected from online casinos, while $20.4 million from internet sports wagering.
The low revenue collection in land-based casinos could be because of 50 percent floor capacity. But, with better regulatory conditions coming to play from June 1, 2021, revenue collection might be better.
Fully vaccinated guests can go into the three land-based casinos without wearing a mask. The casinos are using the honor system to admit visitors going to the casinos.
iGaming Is Officially Approved
In a meeting held yesterday, June 8, 2021, MGCB signed off the licenses allowing internet gaming and sports betting for each of the three Detroit casinos. Previously, the online gaming platforms for each of the three casinos have been working under provisional licenses, granted in January 2021.
Now, each online gaming platform has received full operational privileges. These operators include BetMGM for MGM Grand, Barstool Sports for Greektown, and FanDuel for MotorCity Casino.
Michigan governor Gretchen Whitmer signed the bill legalizing iGaming and online sports wagering in December 2019. Mobile sports betting went live in March 2020, while casinos commenced in January 2021.
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