The Detroit casino industry saw its revenue drop by 56.1% in 2020
The Michigan Gaming Control Board reports a 56.1% decline in 2020 casino revenue by 56.1% as a result of the pandemic.
The casino industry in Michigan is making a loss
Michigan Gaming Control Board (MGCB) announced stunning 56.1% decrease revenues at three casinos in Detroit for 2020.
According to a MGCB report, Detroit's casino revenue for the 12 months to December 31, 2020 has dropped to $ 639.0 million - a decrease of 56.1% year on year. For comparison, a 12-month period revenues in 2019 amounted to USD 1.45 billion.
The drop in revenue is not particularly surprising given the long shutdown of the Detroit casino industry, the low figures for September and October when casinos were allowed to operate, and the constraints they had to operate under.
The vast majority of profits were generated by table games and slots. IN all in all generated $ 620.4 million in 2020, i.e. 97% total. Retail sports betting accounted for only 3% annual revenue and they brought $ 18.3 million.
The difference between the two at first is in part due to poor timing. Retail Sports Betting is a relatively new player in Michigan that launched last March 11. The market was forced to close just days after boot due to a lockdown.
MGM Grand Detroit, MotorCity Casino, and Greektown Casino were closed twice last year. The first instance was by far the worse of the two, as it lasted almost five months - from March 16 to August 4. After a short operating period with limited capacity, the casinos closed again from November 18 to December 22.
The numbers in detail
Three casinos in Michigan suffered comparable percentage losses. Revenue MGM fell by 58.8% to $ 257.1 million in 2020. This is the largest percentage decrease of the three, followed closely by Greektown ze loss of 58.3% to $ 140.6 million. Motorcity fell by 54.9% up to $ 222.7M.
Casinos also paid much lower wagering taxes to the state of Michigan. In total they paid the state $ 50.3 million in taxesmuch less compared to $ 117.8 million in 2019. The three also paid in total $ 78.3 million in taxes to the City of Detroit.
When it comes to sports betting, BetMGM's bookmaker MGM Grand was a leader in the state market in 2020 . He generated $ 8.2 million from 18.3 million, that is 44.8% Total Market Revenue .
MotorCity, in collaboration with gambling leader FanDuel, ranks second with $ 6.0 million, or 32.8% total. others $ 4.1 million was generated by Greektown Penn National.
However, things are going up. Yesterday, January 12, Executive Director of MGCB, Richard Kalm, said the web offer was likely to go live on Jan. 19. All operators will be able to test the water with a trial run during which they will be able to accept plants.