Decrease in Detroit Casino Revenue Observed in March Due to Waning Betting Activity
Detroit's Casinos Stumble in March 2025, Revenue Dips:
Looks like the gambling joints in Detroit didn't have such a hot hand in March 2025. Latest figures from the Michigan Gaming Control Board (MGCB) show that the city's casinos raked in $117.4 million from table games and slots, marking a 5.2% drop compared to the same period last year.
Retail sports betting? It took a nosedive too. The city's handle for March was $12.1 million, a whopping 29.9% decrease year-over-year. And the retail sports betting qualified adjusted gross receipts (QAGR)? It plummeted by 64.3% to approximately $571,200.
MGM Grand Tops but Still Slips:
MGM Grand Detroit, the big kahuna of Detroit's casinos, hauled in the most dough, with $53.8 million from table games and slots. Even though it led the pack, it wasn't all good news—it was still 5.1% lower than its March 2024 earnings.
MotorCity Casino came in second place with $35.9 million in revenue, down 6.4% compared to the previous year. Hollywood Casino at Greektown managed to bear the least brunt with a more minor 0.6% drop, reporting $27.1 million in revenue.
Market share for March? MGM Grand had the lion's share at 46%, MotorCity claimed 31%, and Hollywood Casino accounted for the remaining 23%.
Q1 revenue: A Double Whammy:
Detroit's casino industry took another hit in the first quarter of 2025, with slot and table game revenue dropping 1.2% year-over-year. Revenue for Q1 as a whole was $116.8 million, representing a 4.5% decline compared to Q1 of 2024.
The three casinos ponied up $9.5 million in state gaming taxes during March, compared to the $9.9 million reported for the same month in 2024. They also shelled out $13.9 million in wagering taxes and development agreement fees to the City of Detroit.
Sports Betting and Contests? They're Losing Steam:
MGM Grand Detroit was the undisputed leader in QAGR for sports betting, earning $364,700. MotorCity Casino reported $138,500, while Hollywood Casino at Greektown brought in a meager $68,000.
Fantasy contest operators also saw a decrease in activity. For February 2025, adjusted revenues totaled $579,300, with $48,700 paid in taxes.
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While online gambling in Michigan has been setting records, the specifics of Detroit's land-based revenue aren't readily available. The city received $13.1 million in igaming tax revenue from commercial operators in March, though this represents online operations, not physical casinos.
The Michigan Gaming Control Board reported reduced activity in Michigan's sports betting market in March, but the direct impact on Detroit's land-based casinos isn't quantified. Regulatory actions, such as cease-and-desist orders against illegal gambling sites, may have contributed to the decline, but these occurred after Q1.
Operator performance also offers a mixed bag. For example, BetMGM reported a 27% year-over-year increase in Q1 2025 online revenue, suggesting growth in igaming but no clear link to brick-and-mortar casino performance.
In summary, while the declines reported in March are concerning, recent reports from the Michigan Gaming Control Board (beyond the March igaming data provided) would be necessary to determine whether the trends extend to Q1 2025 physical casino revenue.
- Despite being the highest revenue earner among Detroit's casinos in March 2025, MGM Grand Detroit still experienced a 5.1% decline in earnings compared to the same period the previous year.
- The QAGR for sports betting in Detroit also saw a significant decrease, with MGM Grand Detroit leading the pack, earning $364,700, while MotorCity Casino reported $138,500, and Hollywood Casino at Greektown brought in just $68,000.
- The total adjusted revenues for fantasy contests operators also dropped in February 2025, amounting to $579,300, with $48,700 paid in taxes.
- Although online gambling in Michigan has been prospering, the specific impact on Detroit's land-based casinos isn't evident, as the city received $13.1 million in igaming tax revenue from commercial operators in March, but this represents online operations, not physical casinos.
