From January through June, Detroit’s three casinos—MGM Grand Detroit, MotorCity Casino and Greektown Casino—have seen combined revenue plunge by 59.3 percent from $735.4 million for the first half of 2019 to $299.2 million in 2020, according to the Michigan Gaming Control Board. The three casinos have been closed since March 16 due to Covid-19.
MGM Grand revenue dropped 40 percent to $126. 5 million year-to-date through June, compared to $315.1 million in 2019. MotorCity revenue fell 41 percent to $102.6 million from $250.5 million. And Greektown revenue declined 41 percent to $70.1 million from $169.8 million.
The three casinos’ revenue losses are impacting wagering taxes collected by the city, just $35.6 million through June 2020 compared to $87.5 million in the same period in 2019. According to the gaming board, the state of Michigan receives 8.1 percent of a casino’s net winnings and the city of Detroit receives 10.9 percent. But the state and the city have received $0 since the three casinos produced $0 in April, May and June combined. In the same time period in 2019, the casinos generated $44 million dollars for the city of Detroit.
The casinos continue to await the go-ahead from Governor Gretchen Whitmer, who recently extended lockdowns as Covid-19 cases continued to rise. When Detroit casinos ultimately reopen, they’ll have to follow the gaming board’s plan for new health and safety protocols. These include initially operating at 15 percent capacity, checking employee and patron temperatures, maintaining social distancing and increasing cleaning and sanitation. Smoking will be banned and table games, buffets and live events will remain closed.
Several of Michigan’s 23 tribal casinos, which voluntarily shut down in March, began reopening in late May. FireKeepers Casino Hotel Chief Executive Officer Kathy George said the tribal council “deemed us an essential business for the survival of the tribe. We’re going to be following the CDC guidelines obviously.”
