Detroit released a report on both its December and annual revenue from gambling activities. The city’s three casinos posted an increase in profits for the last month of the year, as compared to the figures that were announced back in December 2013. The bad news is that the overall gaming turnover generated in 2014 dropped 1.2% year-on-year.
In December 2014, Detroit’s revenue from gambling operations increased 10.3% to reach $118.1 million. What is more, all three casino venues in the city reported a rise in their profits as compared to the money generated back in December 2013.
Greektown Casino Hotel marked the most substantial increase. Its revenue went up 12%. The venue earned a total of $28.4 million during the last month of 2014. MGM Grand Detroit posted a 11.5% rise to $50.1 million. As for MotorCity Casino Hotel, the Detroit’s third operating gambling venue, its turnover increased 7.6% and it earned a total of $39.6 million.
According to experts, three main factors contributed most to the rise in profits in December. In the first place, gas prices dropped, which, in turn, meant that people had more money to engage in gambling activities. Secondly, the weather in Detroit was quite nice last month, which led to more players travelling to local casinos. Last but not least, it was Christmas and therefore, there was more time to be spent into the venues’ premises.
Despite the increase in December profits, the overall performance of local casinos was not so impressive in 2014. Gaming revenue dropped 1.2% as compared to the numbers that were reported a year ago. The total amount of $1.33 billion was generated. The city marked a third consecutive year of falling revenues.
Of these $1.33 billion, 83% or $1.1 billion were generated from slot machines and $227 million came from gaming tables.
MotorCity Casino Hotel posted the largest fall in annual turnover. It went down 2.1% and the sum of $445 million was yielded. MGM Grand Detroit reported a 1% drop in revenue to $561.1 million. Greektown Casino Hotel announced a 0.5% fall to $326.7 million.
Richard Kalm, executive director of the Michigan Gaming Control Board, pointed out that the drop was not as significant as expected. State’s gaming officials predicted a decline between 2.5% and 3%. Mr. Kalm said that the 1.2% fall that was posted is “manageable”.
It is important to note that Detroit uses the taxes that its casinos pay to sponsor the local police and fire department. In addition, it finances important programs that aim at improving residents’ quality of life.
Back in 2014, $170 million were contributed to the city out of gambling taxes. The sum equals to 16% of Detroit’s overall yearly revenue.
