Still closed in July, Detroit casinos' revenue drops 65% year-on-year

Revenue at Detroit's three casinos dropped 65 percent, or $555.2 million, in July when compared to the same month of the prior year.

MGM Grand Detroit, MotorCity Casino Hotel and Greektown Casino-Hotel reopened on August 5 after being forced to close in mid-March due to the COVID-19 pandemic. Combined, the three locations brought in $299.2 million in revenue for 2020, compared to $854.4 million in revenue this time last year, Crain’s Detroit Business reports.

Detroit's casinos reported paying $35.6 million to the city of Detroit in wagering taxes and development agreement payments through July 31, $66.1 million less than the same seven-month period last year. As for the state of Michigan, the three casinos paid $24.2 million in gaming taxes, $45 million less than last year's $69.2 million.

The Aug. 5 reopening came with a 15% capacity limit and strict workplace safeguards. This means MGM can allow around 1,500 people inside, MotorCity 1,600 and Greektown can have just more than 1,400. Guidelines include a requirement to wear a face mask, spreading out slot machines, the closure of poker tables, and a ban on indoor smoking. Concert and event spaces will remain closed.

The Michigan Gaming Control Board will monitor the casinos for at least 21 hours/day and always during peak hours in 3 shifts, as well as conduct additional monitoring inspections. The casinos will keep track of their numbers, but the board will do its own count to verify that the numbers come close to matching, according to a MGCB representative cited by Crain’s Detroit Business. Since Aug. 5, MGCB has reported no complaints and said that casinos have been doing a great job following the Gov. Gretchen Whitmer's executive order and the board's guidelines.

The sector is a key revenue source for Detroit, bringing in approximately $600,000 per day for the city pre-pandemic while it employed about 7,000 people, most of whom were furloughed during shutdown. The jobs added $184.2 million in wage taxes and development agreement fees annually to the city.

The reopening means that some of those jobs will be reclaimed. MGM said it will bring back around 1,200 of its 2,800 employees, Greektown will recall approximately half of its 2,000 workers, while MotorCity said it will place up to half of its 2,500 employees back on the payroll.