HomePublicationsNewsletter ArchiveNewslettersVolume 20Issue 7Michigan Gaming Control Board Releases Detroit Casino Revenues for January, 2014

The Michigan Gaming Control Board (“MGCB” or “Board”) released the January, 2014 total adjusted revenue figures for the three Detroit casinos—MGM Grand Detroit Casino, MotorCity Casino and Greektown Casino. Overall, the revenue for the Detroit market was down 9.5% compared to the same reporting period last year. Specifically, revenue for MGM Grand Detroit Casino, MotorCity Casino, and Greektown Casino was down by 8.5%, 9.7%, and 11.2%, respectively during January, 2014 compared to the same month last year.

 

Month in 2014

Total Adjusted Revenue 2014

MGM Grand Detroit

MotorCity Casino

Greektown Casino

 

Total Adjusted

Revenue

Total Adjusted

Revenue

Total Adjusted

Revenue

January

$41,231,507.57

$31,710,276.19

$23,106,523.77

Total

$41,231,507.57

$31,710,276.19

$23,106523.77

 

 

Month in 2014

Total Adjusted Revenue and Taxes 2014

All Detroit Casinos

 

Total Adjusted Gross Receipts

Total State

Wagering Tax

Total Detroit

Wagering Tax

January

$96,048,307.53

$7,779,912.91

$10,469,265.52

Total

$96,048,307.53

$7,779,912.91

$10,469,265.52

All three casinos are subject to a wagering tax of 19%, with 10.9% of this levy to go to the City of Detroit and 8.1% to be paid to the State of Michigan.

The market shares for MGM Grand Detroit, MotorCity Casino, and Greektown Casino for January 2014 were 43%, 33%, and 24%, respectively.

In addition to the general revenue figures, the  Executive Director’s report presented at the February 25 meeting includes information on the 2013 total revenue by type of games played for each casino.

 

Casino

Revenue by Game Type

Slots (%)

Tables (%)

MGM Grand

$461.8M (81.5%)

$105.0M (18.5%)

MotorCity

$387.7M (85.3%)

$66.7M (14.7%)

Greektown

$284.1M (86.5%)

$44.2M (13.5%)

The figures released by the Board are the gross receipts less winnings paid to wagerers. The figures do not include: 1) and fees or other relevant city, state or federal taxes; 2) wages and benefits paid to casino employees; 3) payments to suppliers, services providers or vendors; and 4) other normal business expenses.

At the Tuesday, February 25, MGCB regular public meeting, Board Chariperson Anthony Roberts asked the CEO and President of MotorCity Casino for his thoughts on the market downturn. Mr. Gregg Solomon stated that “the record setting snowfall that occurred in January largely took place on weekends.” He also noted that it was his opinion that the change in the Social Security tax and uncertainty with changes in health care coverage requirements  impacted the amount people allocated for discretionary expenditures. Mr. Solomon stated it will be a challenge for the market to exceed pre-Ohio casino opening levels as a result of the increased gaming capacity in the overall market place.

 

 

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