Detroit’s three land-based commercial casinos reported a year-on-year decline in gaming revenue for 2022, with revenue down across both slots and tables games and sports betting.
Revenue for the 12 months to December 31, 2022, was $1.28bn, down 1.4% from $1.29bn in the previous year. Slots were responsible for $983.7m of total revenue, representing 77% of the market, then table games with $273.3m (21%) and sports betting at $18.8m (2%).
Analysing the performance by market sector, combined slots and table games revenue fell by 0.8% year-on-year to $1.26bn.
Qualified adjusted gross receipts (QAGR) from retail sports betting – classed as gross sports betting receipts minus the monetary value of free play incentives provided to and wagered by bettors – experienced a steeper drop, with QAGR down 30.2%.
MGM retains top spot
In terms of operators, MGM Grand Detroit led the way with a 48% market share, ahead of MotorCity Detroit on 31% and Hollywood Casino at Greektown on 21%.
MGM drew $600.0m of total annual revenue from slots and table games and $6.2m sports betting. MotorCity posted $396.5m in slots and table games revenue and $5.5 in sports wagering QAGR, while Hollywood Casino generated $260.5m in slots and table games revenue and $7.1m in sports betting QAGR.
The casinos paid $155.6m in gaming taxes to the State of Michigan and $160.8m in wagering taxes and development agreement payments to the City of Detroit during the month.
In addition, the venues paid $711,087 in retail sports betting gaming taxes to the State and $869,107 to the City of Detroit in retail sports betting taxes.
December results
Turning to the final month of the year, revenue in December was $109.9m, down 2.3% from the previous year, but 8.0% higher than $101.8m in November 2022.
Table games and slots accounted for $108.3m in revenue during December, a drop of 2.8% from the same month in 2022, though sports betting QAGR jumped 48.0% to $1.6m.
MGM said that table games and casinos revenue reached $51.0m and sports betting QAGR $723,474 in December.
MotorCity reported $33.0m in slots and table games revenue and $548,710 in sports betting QAGR, while Hollywood Casino posted $24.3m in slots and table games revenue and $364,788 worth of sports betting QAGR.
The three casinos paid $8.8m in gaming taxes to the State and $13.4m in wagering taxes and development agreement payments to the City of Detroit, as well as $61,878 in retail sports betting gaming taxes to the State and $75,628 to Detroit in retail sports betting taxes.