Revenue Up At Michigan Operators Amid Retail Decline

Michigan’s three commercial casinos, all located in Detroit, saw an aggregate drop in total adjusted gross receipts for November. That came amid a workers’ strike that started in the middle of October, but that work stoppage is now over. 

In November the total adjusted gross receipts (TAGR) combined at the three brick-and-mortar casinos in Detroit totaled $76 million, down 7% from October (about $81.7 million). November’s combined TAGR was down almost 24% compared to pre-strike September ($99.99 million).

As a result, the November state wagering tax of $6,156,204, was down a corresponding 7% from October ($6,617,568). The November city wagering tax of $9,350,739 was down 7.4% from October ($10,095,334).

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Revenue Rises

Meanwhile, for Michigan online casinos, where customers were not facing a physical picket line, November TAGR was about $157.77 million, up 9.4% from October (almost $144.25 million). The November total state tax for iGaming also rose 9.4%, from $30,118,594 in October to $32,941,407 last month.

Detroit’s casino industry went through a workers’ strike that began in mid-October at all three casinos. The strike at two of the casinos, MororCity and Greektown, ended in mid-November. At the third casino, the MGM Grand Detroit, the strike went into early December before union members ratified a deal to end the stoppage. Workers were on strike over wages, health care and workloads.

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Revenue Details

Not surprisingly, the MGM Grand, with a longer strike, saw the biggest drop in revenue from the previous month. The MGM Grand’s TAGR in November was $30.64 million, down 17.9% from October ($37.32 million) and down even more, 31.5%, compared to September (about $44.73 million).

The November TAGR for the other two casinos, where the strike ended earlier, was not as impacted compared to October. MotorCity’s TAGR was $24.67 million, down about 1.3% from October’s just over $25 million. Greektown’s $20.68 million was up 6.8% (from $19.36 million) in a month-over-month comparison.

For more industry news and reviews as well as sports betting information including Detroit Lions Super Bowl odds, keep BetMichigan.com in mind.