The city’s three commercial casinos — MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown — have all weathered significant setbacks, including a workers’ strike and a cyber attack. Despite these obstacles, Detroit’s casinos are on track for their best year since 2019, highlighting their ability to adapt and recover.
Detroit’s Casino Industry Rebounds Post-Challenges
MGM Grand Detroit, in particular, has been a notable example of recovery. The casino, which suffered the most during last year’s strike and cyber attack, has seen a resurgence in its financial performance. Bill Hornbuckle, MGM Resorts International President and CEO, expressed optimism during a recent earnings call, stating,
“It’s great seeing Detroit finally returned to its earlier prowess in that marketplace post-strike, post-cyber [attack] last year.”
The casino’s recovery is evident in its improved monthly revenue from slots and table games, which averaged $51.3 million in July 2024, up 2.5% from the same month last year. This marks a significant turnaround from 2023, where the financial losses totaled over $30 million due to the 47-day strike alone.
The overall market dynamics have also shifted. July 2024’s aggregate revenue for Detroit’s casinos totaled $105.9 million, with table games and slots contributing $106.3 million and retail sports betting recording a slight negative of $399,229. Notably, MGM Grand Detroit captured the largest market share at 48%, with MotorCity Casino and Hollywood Casino at Greektown following at 29% and 23%, respectively.
While revenue from table games and slots decreased slightly by 0.4% compared to July 2023, it was still 1.7% higher than the previous month, reflecting steady growth in a post-pandemic world.
Regulatory Changes and Future Prospects for Detroit Casinos
Regulatory developments have played a crucial role in shaping the future of Detroit’s casino industry. In August 2024, the Michigan Gaming Control Board (MGCB) unanimously approved the one-year renewal of licenses for all three Detroit casinos, affirming their compliance with state regulations and their commitment to Michigan responsible gaming practices.
“This decision reaffirms our confidence in the casinos’ commitment to maintaining high standards of integrity, security, and fairness in their operations,”
said MGCB Executive Director Henry Williams. This renewal ensures that the casinos will continue to operate under stringent guidelines, promoting a safe and well-regulated gaming environment in the city.
In a bid to further stimulate economic growth and foster a more inclusive supplier landscape, the MGCB also introduced changes to vendor exemptions and waivers. The new “Subcontractor 2” exemption, for example, allows subcontractors to provide up to $500,000 in non-gaming-related goods and services annually without conflicting with their construction-related services.
This policy adjustment is expected to provide new job opportunities and drive economic growth within the industry, reinforcing the Board’s commitment to supporting small businesses in Detroit.
Looking ahead, Detroit’s casinos are well-positioned to continue their recovery and growth. The year-to-date revenue for table games and slots has reached $751 million, the highest since 2019, signaling a robust recovery from the pandemic’s impact. While the road to full recovery has been challenging, especially with the competitive pressures in both the retail and online gaming spaces, Detroit’s casinos have demonstrated resilience and adaptability.
The industry’s ability to bounce back, coupled with favorable regulatory changes and a renewed focus on inclusive growth, sets a positive tone for the future of Detroit’s gaming landscape. As Jonathan Halkyard, MGM’s CFO, put it,
“We also have seen a full recovery at MGM Detroit, which we all know faced headwinds since midway through last year.”
