Detroit Casinos Total Nearly $1.3 Billion In Revenue For 2022

The Michigan Gaming Control Board reported on Tuesday that Detroit’s three casinos generated close to $1.3 billion in revenue outside of sports wagering for 2022, an overall slight decline compared to the prior year.

MGM Grand Detroit, MotorCity Casino, and Greektown Casino did close the calendar year strong with a combined $108.3 million in revenue for December, up 8.4% from November’s $99.9 million haul. The trio cleared the $100 million benchmark eight times in 2022, with monthly totals ranging from $95.6 million in February to $120.9 million in March.

December’s figures, though, were 2.8% lower compared to the final month of 2021, when the three casinos generated $111.4 million in revenue. The overall 2022 revenue total from casino wagering was 0.8% lower compared to 2021, a drop of less than $10 million overall. It is also not a true like-for-like comparison as the three venues operated with capacity limits for the first half of 2021 due to the COVID-19 pandemic.

The state received $8.8 million in tax receipts, lifting the total for the year to $101.8 million. The city of Detroit had an inflow of $13.4 million into its coffers for December, ending the year with $155.6 million in tax revenue. Taxes from retail sports wagering in 2022 added another $744,912 to the state and $910,446 to the city, with the casino’s three sportsbooks generating a combined $18.8 million in adjusted revenue.

MGM Grand enjoys banner 2022, MotorCity sputters

MGM Grand was the only Detroit casino of the three to post a year-over-year increase in revenue and did so in impressive fashion. It finished less than $2,100 shy of $600 million, an 8.3% improvement on last year’s total of $554 million. MGM Grand, which accounted for 48% of the casino market share for 2022, closed the year with nearly $51 million in revenue for December.

MotorCity Casino, which failed to report a year-over-year gain in revenue during any month of 2022, totaled $396.5 million in revenue after coming up just shy of the $33 million mark in December. It finished 9.5% off last year’s total of $438.3 million, which resulted in state tax payments being $3.4 million lower versus 2021.

Greektown capped its 2022 with $24.3 million in revenue, lifting the yearly total to $260.5 million. That was a 5.1% backslide versus the $274.4 million in revenue generated in 2021, with the soft summer months of June and July largely to blame. Greektown reported $36.2 million in combined revenue in June and July, 20.7% lower than the same months in 2021.

Sportsbooks cap 2022 on a solid note

The three brick-and-mortar sportsbooks generated $1.6 million in adjusted revenue for December, capping a strong second half in which 59% of the 2022 revenue — $11.1 million — came in the final six months. Greektown accounted for more than half the $263.7 million overall retail handle at $132.1 million, though nearly 70% of that came in the first six months of 2022.

The Barstool Sportsbook-powered venue also narrowly held off MGM Grand for the top adjusted revenue spot, finishing with slightly more than $7 million on the strength of a 5.3% hold. MGM Grand posted $6.2 million in adjusted revenue from $78.6 million handle for a 7.9% win rate, while MotorCity’s FanDuel-backed book had a city-best 10.5% hold, helping it keep $5.5 million of the $53 million in wagers placed.

The year-over-year totals, though, showed dramatic declines across the board. Handle was down 15.1% compared to 2021’s total of $310.6 million, and adjusted revenue was off 30.2% versus the previous year’s $26.9 million. The two key reasons for the drop in revenue were the $875,000 hit the books absorbed in February due in large part to Super Bowl LVI, and the 2022 overall win rate of 7.1% on adjusted revenue being more than 1.5 percentage points lower compared to 2021.

There were some bright spots, however, specific to December. MotorCity ran its streak of double-digit win rates on adjusted revenue to six months, reaching 11.5% as it kept $550,000 from $4.8 million handle. MGM Grand was a close second with an 11.3% hold, leading the trio of books with $720,000 revenue and $6.2 million in wagers. Greektown’s win rate bounced two full percentage points higher to 7.4% in December, allowing it to claim $365,000 from $4.9 million in bets placed.

Photo: Shutterstock

Author: Justin King