November saw another strike by workers in Detroit’s land-based gaming sector, hitting casinos again, with revenue in the Michigan city falling 22.3% year-on-year to $79.1m (£63.1m/73. €3 million).
Revenue from the city’s three land-based commercial casinos fell from $101.8 million in the same month last year. The November figure was also 4.5% lower than the $82.8 million that Detroit posted in October of this year.
The decline came against the backdrop of strikes in Detroit. Some workers went on strike on October 17 and did not reach an agreement on wages until mid-November. This meant the MGM Grand, Greektown and MotorCity casinos were short-staffed for most of the month.
Of all the three casinos’ revenue, $76.0 million came from table games and slot machines. That was 23.9% less than in the previous year and 7.0% less than in October 2023.
The remaining $3.1 million in revenue was qualified adjusted gross revenue (QAGR) for sports betting. That was 63.2% more than in November 2022 and 181.8% more than in October this year.
When it comes to sports betting operations, players in Detroit spent $15.3 million on casino sports bets. This was a 15.5% decrease from $18.1 million in November 2022 and October 2023.
Closes the gap to MGM in Detroit.
MGM remained the leading casino in Detroit, holding 34% of the market in November. However, the 46% lead in October has been reduced.
MGM reported $30.6 million in table and slot machine revenue and sports betting QAGR worth $230,847.
MotorCity closed the gap with MGM, reporting a 34% market share. It generated $24.7 million in revenue from table and slots revenue and $2.2 million from sports betting (QAGR).
Rounding out the Detroit brand was the Hollywood Casino at Greektown with a 27% share. Greektown reported $10.8 million in table and slot revenue, in addition to $657,545 in sports betting QAGR.
As for taxes, casinos paid $6.2 million in gambling taxes to the state of Michigan in November. Another $9.4 million was paid to the city of Detroit in betting taxes and development agreement payments.
Sports betting taxes in the state of Michigan totaled $116,769. Additionally, the three casinos paid $142,718 in betting taxes to the city of Detroit.