Detroit Casinos Secure License Renewal as Revenue Surges

In a unanimous decision reached during their routine public session, the Michigan Gaming Control Board (MGCB) granted its seal of approval to the extension of licenses for the trio of esteemed Detroit casinos – MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown.

MGCB Director Underlines Commitment to Responsible Casino Operations Through License Renewal

Henry Williams, the Executive Director of MGCB, emphasized the significance of license renewal, affirming it as a continuous pledge to uphold a credible and accountable establishment.  Williams stated:

Renewing a casino license reflects an ongoing commitment to operate a reputable and responsible establishment. It signifies a dedication to maintaining high standards of quality, security, and fair play within the industry. The renewal of these licenses is a 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.

Henry Williams, the Executive Director of MGCB

The comprehensive evaluation process for casino license renewal, outlined by the Michigan Gaming Control and Revenue Act, involves a meticulous assessment of various aspects of the casinos, encompassing financial stability, operational soundness, adherence to legal and regulatory structures, and adherence to responsible gaming principles.

The licenses for the three Detroit casinos will be up for renewal once more in August 2024.

License holders are subject to an 18% tax on their adjusted gross revenue, with daily wagering tax payments carried out through electronic funds transfer. Of this amount, 8.1% is directed to the state’s coffers, while the City of Detroit receives 9.9%, including development agreement payments. Additionally, the casinos are liable for an 8.4% tax on adjusted gross revenue from retail sports betting, along with an annual fee designed to cover the state’s regulatory expenses.

July 2023 Brings Remarkable Financial Triumph for Detroit Casinos

Remarkable financial performance has accompanied this renewal. The July 2023 figures unveiled a collective monthly revenue of $107.2 million for the three establishments, MGM Grand Detroit, MotorCity Casino, and Hollywood Casino. Table games and slots contributed a considerable $106.7 million to this total, with an additional $477,543 attributed to retail sports betting.

A breakdown of July’s market shares highlights MGM’s dominance with a 47% share, followed closely by MotorCity at 29%, and Hollywood Casino at Greektown claiming a 24% share.

These results contrast those posted in May when Detroit’s three casinos saw a slight revenue decrease, reporting $105.6 million in aggregate revenue primarily from table games and slots, with Hollywood Casino at Greektown showing growth, while MGM and MotorCity faced declines. The state collected $8.5 million in taxes. Additionally, the MGCB disclosed in June its anticipation of receiving approximately $51 million in funding for the year 2024, aimed at enhancing the regulator’s operational capabilities.