The Michigan Gaming Control Board unanimously voted to approve the one-year renewal of the licenses for the three authorised Detroit casinos; MGM Grand Detroit Casino, MotorCity Casino, and Hollywood Casino at Greektown.
By law, three votes, which constitutes a quorum for the Board, are required in support of final determinations on applications for a casino license.
“Renewing a casino license reflects an ongoing commitment to operate a reputable and responsible establishment,” MGCB Executive Director Henry Williams said. “It signifies a dedication to maintaining high standards of quality, security, and fair play within the industry. The renewal of these licenses is validation of the casinos’ commitment to operating as responsible and valued corporate citizens within Michigan that contribute positively to the state’s gambling industry while ensuring a safe and enjoyable experience for all patrons.”
The Michigan Gaming Control and Revenue Act established the casino license application process and the information applicants must share with the MGCB. For a casino license renewal, the MGCB must conduct a comprehensive evaluation of various aspects of the casino including its financial stability, operational integrity, and adherence to legal and regulatory frameworks as well as responsible gaming practices.
Licensees are taxed at a rate of 18 per cent on adjusted gross receipts and remit their wagering tax daily via electronic funds transfer. The state receives 8.1 per ent and the City of Detroit receives 9.9 per cent of the wagering tax plus development agreement payments. The casinos also pay an 8.4 per cent tax on retail sports betting qualified adjusted gross receipts, as well as an annual fee to cover the state’s regulatory expenses.
Michigan’s casino gaming law includes standards for promoting responsible gaming. Licensees are required to display the state’s toll-free gambling helpline number, 800-270-7117, at all entrances and exits, on each electronic funds transfer terminal and credit location, and on all printed advertisements and promotional materials.
The three Detroit casinos would each be eligible for license renewals again in August 2024.
They generated $107.2m in monthly aggregate revenue for the month of July 2023, of which $106.7m was generated from table games and slots, and $477,543 from retail sports betting.
In terms of July market shares MGM Grand Detroit Casino had 47 per cent, MotorCity Casino had 29 per cent and Hollywood Casino at Greektown had 24 per cent. July table games and slot revenue increased 4.8 per cent when compared to June 2023 results. July monthly revenue was 0.7 per cent higher than July 2022. From 1 January through 31 July, the casinos’ table games and slots revenue increased by 0.9% per cent compared to the same period last year.
The casinos’ monthly gaming revenue results were mixed compared to July 2022. Hollywood Casino at Greektownwas up 27.5 per cent to $25.3m, MGM was down 2.4 per cent to $50m and MotorCity was down 10 per cent to $31.4m.