Operator News
US – Detroit casinos to operate at just 15 per cent of capacity
By Phil - 10 June 2020
The Michigan Gaming Control Board has approved minimum reopening guidelines for the Detroit casinos to protect public health and safety, including a limitation of 15 per cent of the legal capacity at each casino. The casinos will remain closed until reopening can be permitted under Gov. Gretchen Whitmer’s Safe Start Plan.
“In compiling these minimum guidelines, we considered CDC recommendations, Nevada Gaming Board guidelines and information from the National Indian Gaming Commission,” said Richard S. Kalm, MGCB executive director. “We required the casinos to propose reopening plans, and we consulted with the casino unions on the guidelines. We believe the guidelines will protect the public when it is safe to reopen the casinos.”
The minimum guidelines for initial opening include limited entrance points with temperature checks, a ban on smoking on the casino floors, no poker rooms, heightened cleaning protocols and social distancing. The minimum reopening guidelines approved will be implemented after the governor issues an order allowing the casinos to reopen.
The three Detroit casinos’ year-to-date aggregate revenue of $299.2m was down by 51.6 per cent through May compared with $617.9m in aggregate revenue reported for the same five-month period last year.
The casinos did not produce revenue in May because they were ordered to remain closed due to COVID-19 health concerns. Gov. Gretchen Whitmer’s Executive Order 2020-110 continues the closure of the casinos until further notice.
MGM Grand Detroit Casino generated $126.5m in revenue, down 52.1 per cent. MotorCity Casino generated $102.6m, a fall of 51.3 per cent whilst Greektown Casino generated $70.1m, down 50.9 per cent
Through May 31, the three Detroit casinos paid $24.2m in state gaming taxes compared with $50m for the same period last year. The result is a $25.8m decrease in tax payments. The three Detroit casinos reported submitting $35.6m in wagering taxes and development agreement payments to the City of Detroit through May compared with $73.5m for the same period last year. The result is a $37.9m decrease in payments to the city. For the month ended April 30, fantasy contest operators reported total adjusted revenues of $184,289 and paid the state $15,480 in taxes. Year-to-date through April, fantasy contest operators reported aggregate adjusted revenues of $3.1m and paid $263,643 in taxes.
