The Michigan Gaming Control Board released on Tuesday information about the financial performance of Detroit’s three casinos in 2015. The three gambling venues generated the total amount of $1.38 billion last year, up 3.3% as compared to the figures posted for 2014. Revenue from slot machines accounted for 83% of the overall figure and table games contributed 17%.
MGM Grand Detroit, Greektown Casino-Hotel, and MotorCity Casino Hotel posted annual revenue increase for the first time since 2011. The reported figures also represented the best year for the city’s casinos since 2012, when revenue amounted to $1.42 billion. Here it is also important to note that the three gambling venues contributed the amount of $174.3 million in tax revenue to the city of Detroit in 2015.
Revenue at MGM Grand Detroit increased 3.7% year-on-year to reach $582 million in 2015. Greektown Casino-Hotel generated the amount of $329.9 million last year, up 1% as compared to the figures reported for 2014. Last but not least, MotorCity Casino Hotel’s revenue was up 4.4% in 2015 to reach $464.5 million.
People with knowledge of the matter pointed out that the revenue increase could be attributed to low gas prices and the general improvement in Michigan’s economy. Alex Calderone, Managing Director of financial advisory firm Calderone Advisory Group, said that gambling is an industry that is highly dependent on “discretionary income” or in other words, when people do not spend money at the pump, they can spend it on gambling.
Tax revenue from local casinos has been an important revenue source for the city, which exited bankruptcy late in 2014. Over the past several years, tax revenue contributed by Detroit’s three casinos accounted for 16% of the city’s overall revenue.
Representatives for MotorCity Casino Hotel and MGM Grand Detroit could not be reached to comment on the increase in casino proceeds. An executive at Rock Gaming, the gambling operator that manages Greekton Casino-Hotel, said that the posted results were great news not only for the gambling venues but also for the city as a whole.
The hotel and casino complex has almost completed its $60-million renovation. Its interior has been modernized, a new air-handling system has been installed, and 400 slot machines have been added.
