Despite the ongoing downfall trend, casinos in Detroit seem to have performed relatively well in October. Analysts point that this was enhanced by the generally stable economic environment in the course of the month as well as the fact that gamblers had an additional weekend day to spend in gaming parlors.
The overall turnover of Greektown, MGM Grand, and MotorCity was reported to amount to $113.4 million, marking a rise of 6.6% as opposed to last October. If we look at each individual casino, the figures will go as follows: MGM Grand Detroit scored an increase of mere 1.6 percent, which added up to $47 million; MotorCity gained a total revenue of $37.7 million; Greektown marked the most significant rise by 15% or gained the amount of $28.7 million, in other words.
It is important to note that October had a total of nine weekend days and this most probably contributed to the improvement in the numbers. Jeffrey Compton, a gaming consultant from Ohio, whose company is responsible for the publication of the so-called CDC gaming report, said that he considered October particularly suitable for “home-related entertainment”. He also emphasised that he would like to see whether the increase in casino revenue was going to become a trend, before drawing any definitive conclusions.
Despite the fact that Detroit casinos performed better as compared to October 2013, they were still facing a decrease. Their overall turnover has marked a two-percent fall since the beginning of the year. And it turns out that this trend has been kept for three consecutive years. Some believe that one of the reasons for this is that gamblers have been attracted to the well-designed, non-smoking casino, located in Toledo, Ohio. Compton, on the other hand, suggested that the slight rise in revenue might be due to the fact that Toledo’s allure might have diminished.
The gaming consultant also pointed out that poorer financial results might be expected in November and December with the upcoming Thanksgiving and Christmas festivities. People would prefer shopping to gambling. What is more, considering the worsening weather, less and less will engage in travelling to casino facilities.
Reports point that casino market in Detroit has posted a 16-percent drop since 2001. In the course of these thirteen years, rumors have been floating that one of the casinos there might get closed.
Last April, Dan Gilbert, founder and current managing director of Quicken Loans, took charge of Greektown, promising that $150 million would be invested in the venue’s refurbishment. However, he announced not long ago that no more than $50 million could be spent for the purpose. The casino was promised to be redesigned and fitted with a better HVAC system.
Currently, Greektown controls the smallest portion of the gaming market in Detroit. It experienced the most considerable drop in turnover – that is, 6.7% or it gained $328.3 million, to be more precise. MGM’s turnover decreased by 6.3%, and MotorCity’s marked a mere 1.2-percent drop.
