Michigan Casinos June Revenue Up, Retail Sportsbooks Down
In June 2023, Michigan’s three Detroit casinos reported a combined revenue of $101.5 million, according to the latest data released from state regulator the Michigan Gaming Control Board, or MGCB.
That’s up 3.8% year-on-year, but it is also down 3.8% on last month.
The three Michigan gambling venues, MGM Grand Detroit, MotorCity Casino (pictured), and Hollywood Casino Greektown paid $8.3 million in state tax and $12.1 million to the city of Detroit, as per their development agreement with the city.
The state’s sportsbooks, meanwhile, let the team down somewhat. Or, to put it another way, bettors had a successful month. Retail sportsbooks at the three casino venues reported $8.1 million in total handle, but actually came out with a loss of £378,641.
The loss was primarily because of a single bet at MotorCity Casino, which resulted in a payout of $972,000.
Casino Revenue Overview
Revenue from table games and slots at the Detroit casinos increased by 3.8% compared to June 2022, totaling $101.9 million. For 2023 so far, revenue from table games and slots is up by nearly one percentage point at 0.9% compared to 2022.
MGM Grand Detroit continues to lead the market, capturing 46% of the revenue from casino games in June. MotorCity Casino followed with 32%, and Hollywood Casino at Greektown accounted for the remaining 22%. In terms of revenue, MGM Grand Detroit generated $47.0 million, MotorCity Casino $32.5 million, and Hollywood Casino $22.4 million.
The three casinos paid $8.3 million in taxes to the state from gaming activity, and $12.1 million to the city of Detroit. The casinos are expected to see a rebound and larger growth in July, thanks to numerous promotions offered for the July 4 holiday.
Big Winners Add to Poor Month for Sportsbooks
A significant win at MotorCity Casino’s sportsbook resulted in a loss for the venue in June. A single bet resulted in a $972,000 payout, pushing MotorCity to a loss of $708,625 for the month.
BetMGM must also have lost some heavy bets in June, as it came out with just $30,000 in revenues. The MGCB decline to report revenues for each sportsbook. But with BetMGM’s status as a nationally popular operator and the moe than $8.1 million handle, it was probably in the millions. That makes $30,000 a poor hold.
Greektown had the best month, with a revenue hold of $283,009.
As a result, the three casino sportsbooks reported a combined loss for the month.
The three sportsbooks’ poor month means they sent a total of $11,832 in taxes to Lansing, and $14,462 was paid to Detroit. That’s about 0.13% of the casino’s June tax bill.
And it wasn’t just the operators’ hold that was low. June is traditionally a quiet month for sports betting, but year-on-year stats show Michigan’s total sports betting handle was down 63% from June 2022.
Fantasy Contests Still Popular
The state reports fantasy contest results a month behind schedule, so May’s results for this sector were also published this month.
The figures show that, in a rare occurrence since the era of legalization, fantasy sports operators at the Detroit casinos reported better revenue figures than actual sportsbooks.
The fantasy sports operations in Michigan pulled in $1.8 million in revenue for the month, compared to the negative $300,000 for the retail books.
This activity resulted in $155,539 in taxes, which is about six times the amount that came from retail sportsbooks at the casinos. Since the first of the year, the fantasy contests have generated $10.8 million in aggregate revenue, resulting in $903,369 in taxes for the state of Michigan.
In other state news, the MGCB recently received a significant $50 million a year funding boost in the latest state budget. The funds are intended to help it carry out its regulatory duties.