Detroit Casinos’ License Renewals Secured

Article ByDavid Weir

August 17, 2023

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Posted in: Michigan Gambling News, US Casino News

The Michigan Gaming Control Board, or MGCB, has given the green light for the renewal of licenses for all three of the state’s major casinos. This decision, made during a regularly scheduled public meeting, ensures that MGM Grand Detroit, MotorCity Casino (pictured), and Hollywood Casino at Greektown will continue their operations for another year.

The renewal process isn’t just a formality. It’s a rigorous assessment of a casino’s commitment to maintaining high standards in the industry.

“Renewing a casino license reflects an ongoing commitment to operate a reputable and responsible establishment,” said MGCB Executive Director Henry Williams in a statement from the regulator.

“It signifies a dedication to maintaining high standards of quality, security, and fair play within the industry. The renewal of these licenses is validation of the casinos’ commitment to operating as responsible and valued corporate citizens within Michigan that contribute positively to the state’s gambling industry while ensuring a safe and enjoyable experience for all patrons.”

Related: The best online casinos in Michigan, compared and rated

Financial Implications and Regulatory Adherence

The renewal process is comprehensive, ensuring that casinos are financially stable and operate with integrity. They must adhere to legal and regulatory frameworks and promote responsible gaming practices. The Michigan Gaming Control and Revenue Act laid down the criteria for the casino license application process, including the kind of information that applicants must share with the MGCB.

These casinos are taxed at a rate of 18% on their adjusted gross receipts. They transfer their wagering tax daily through electronic means. The state of Michigan receives 8.1% of this tax, while the city of Detroit gets 9.9%, in addition to development agreement payments.

Furthermore, the casinos also contribute an 8.4% tax on retail sports betting revenues and an annual fee that covers the state’s regulatory expenses.

Michigan’s casino gaming law is also stringent about promoting responsible gaming. All licensees must prominently display the state’s toll-free gambling helpline number. This includes all entrances and exits, electronic funds transfer terminals, credit locations, and even printed advertisements and promotional materials.

The three Detroit casinos will be up for license renewals again in August 2024. This cycle ensures that the casinos maintain their standards.

Economic Impacts

The three casinos have been significant contributors to Detroit’s economy. In 2023, figures released by the regulator show that the three casinos pull in around $100 million in revenue a month, and between $8 million and $15 million in taxes.

MGM Grand Detroit is the market leader, averaging 45% to 50% of the market each month.

Sportsbooks at the three casino venues haven’t fared so well in recent months, with the three retail books posting a collective loss making month in June.

As for the taxes, Michigan lawmakers have been putting them to use in further boosting the regulator. Last month the MGCB announced a $50.7 million round of new funding as part of the state’s 2024 fiscal year budget.

The casinos’ successes have also inspired others to try their hand at the gambling game. Earlier this year, one entrepreneurial Detroit resident to open up a “cannabis casino” in his failing weed dispensary. Back in April the Reef Dispensary opened a casino gaming section, with cannabis themed prizes instead of cash.