After a record-setting 2019, the three Detroit casinos experienced a sharp decrease in revenues in 2020.
MGM Grand Detroit, MotorCity Casino, and Greektown Casino brought in a combined $639 million, down 56% from the previous year’s $1.45 billion, according to a report issued Tuesday by the Michigan Gaming Control Board.
The casinos experienced two closures due to COVID-19 restrictions last year: from March 16 thru August 4, and between Nov. 18 and Dec. 22. When the casinos reopened, they were operating under strict limited–capacity guidelines issued by the Michigan Department of Health and Human Services.
In March, Detroit Mayor Mike Duggan estimated that the closures cost the city about $600,000 per day in casino revenue.
The annual report was released with online sports betting and igaming in Michigan potentially days away. Since the state legislature and Gov. Gretchen Whitmer approved both forms of gambling in December 2019, regulators have been formulating rules and methods to monitor and license the new virtual platforms. Reports indicate those controls are almost ready and online sports betting and gambling should be available in a few days.
Sports betting was available at the brick-and-mortar casinos starting in March 2020, with a total handle of $130.8 million. Adjusted revenue was $18.3 million, with MGM reporting $8.2 million, MotorCity $6 million, and Greektown $4.1 million.
Total slot and table–game revenue dropped significantly at each casino in 2020. MGM’s $257.1 million is a decrease of 58.8% from 2019. MotorCity revenues fell to $227.7 million, a 54.9% drop, and Greektown had a decrease of 58.3% to $140.6 million. Slots comprised 78% of revenues at the three properties, while table games accounted for 19%.
Slot and table–game revenue dropped 82.8 % in December from the same period in 2019. MGM’s $7.59 million was a decrease of 86% compared to December 2019. Greektown’s revenue was $5.37 million for December 2020, a decrease of 82.1%, and MotorCity’s $9.09 million was a decline of 79%.
In-person sports betting totaled $1.88 million in revenue in December, with MGM leading with $776,788. MotorCity brought in $646,003 in sports betting revenue for the month, and Greektown’s revenue was $460,449.
Total revenue for the fourth quarter of 2020 was $163.9 million, 55.4% lower than the same period in 2019. MGM brought in $65.8 million, a 58.1% drop. MotorCity’s fourth quarter revenues were $62.9 million, 49.1% of the previous year, and Greektown dropped 59.5% to $35.2 million.
Rege Behe is lead contributor to CDC Gaming Reports. He can be reached at rbehe@cdcgaming.com. Please follow @RegeBehe_exPTR on Twitter.
