Michigan Gaming Control Board Extends Three Detroit Casinos’ Licenses After They Raked in $107.2 Million in July

The Michigan Gaming Control Board (MGCB) recently held a public meeting during which it voted to issue Hollywood Casino from Greektown, MGM Grand Detroit, and MotorCity Casino a gaming license each. They will renew their permits in August 2024. The three Detroit gaming venues raked in $107.2 million in July.

Table games and slots earned them $106.7 million, while retail sports betting generated $477,543. MGM generated 47 percent of the City’s gaming revenue, while MotorCity contributed 29 percent and Hollywood Casino 24 percent.

The Licenses’ Renewal

The Michigan Gaming Control and Revenue Act states that a license renewal requires three votes which is the Board’s quorum. MGCB’s Executive Director, Henry Williams, stated that a gaming license renewal shows a casino’s commitment to maintaining its reputation and reliability.

Yet, it ascertains the gaming operator’s determination to promote fair play and maintain high security and quality standards in the casino industry.

The state’s Gaming Act highlights what a casino should do when applying for a gaming license, including disclosing vital information to the MGCB.

The gaming regulator has to access a casino’s gaming laws, integrity, gaming practices, regulatory frameworks, and financial status before it renews its license.

Casinos pay an 18 percent tax on their adjusted gross receipts and transfer their gambling tax electronically. Michigan imposes an 8.1 percent betting tax, while Detroit charges an operator a 9.9 percent tax.

Besides, gaming properties pay an 8.4 percent tax on retail sports bets on their adjusted gross receipts and a state regulatory costs fee. The state’s legislation requires a casino license holder to promote responsible gaming by adding Michigan’s toll-free betting helpline number (800-270-7117) at its exits, entrances, credit location, promotional materials, printed ads, and all electronic funds transfer terminals.

Casinos’ Taxes and Income

The gaming operators’ table games and slots revenue in July increased by 4.8 percent, unlike that of June. Still, it is 0.7 percent higher than that of July 2022. The three casinos whose licenses the MGCB renewed performed as follows:

  • MotorCity- a 10.0 percent decline to $31.4 million
  • Hollywood Casino at Greektown- a 27.5 percent increase to $25.3 million
  • MGM- a 2.4 percent decrease to $50.0 million

The casinos paid $8.65 million state taxes in July, unlike the $8.58 million they paid to Michigan in July 2022. Detroit received $12.7 million in betting payments and tax from their agreement. The operators had a $7.96 million retail sports gambling income and $485,763 total gross receipts.

MGM had a $121,017 qualified adjusted gross receipt (QAGR), while MotorCity and Hollywood Casino at Greektown had $40,723 and $397,249 receipts, respectively. They increased their total QAGR by $868,951, unlike in June. However, it was 62 percent less than in July 2022.

The casinos paid $19,590 in state gaming taxes and made a $23,944 gambling tax payment to Detroit for their sports gambling revenue.

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