The Michigan Gaming Control Board has unanimously voted to approve the one-year renewal of licences for the three Detroit casinos, despite witnessing a year-on-year gaming revenue decline.
By law, three votes are required in support of the final determinations of the board on applications for casino licences.
“A casino licence is a privilege granted by the state of Michigan,” said Henry Williams, MGCB’s Executive Director. “Board members and agency staff take seriously our responsibilities when reviewing this privilege each year as required by law.”
The licence extension for the three Detroit casinos – MGM, MotorCity and Hollywood Casino at Greektown – comes after monthly gaming revenue results declined YoY for all aforementioned casinos – published on the Michigan governments official website.
Year-on-year comparisons see MGM was down 4.7 per cent to $51.2m, MotorCity witnessed a 9.6 per cent decline to $34.8m and Hollywood Casino at Greektown suffered the highest drop of the three by 15 per cent to $19.9m.
Moreover, the three casinos reported $107.2m in monthly aggregate revenue during July, with table games and slots producing $105.9m in revenue and retail sports betting generating $1.3m.
Monthly market shares reported were MGM at 48 per cent, MotorCity seeing 33 per cent and Hollywood Casino at Greektown at 19 per cent.
Part of the licence conditions sees licensees taxed at 18 per cent on adjusted gross receipts and remit the wagering tax daily via electronic funds transfer.
The state receives 8.1 per cent with the City of Detroit gaining 9.9 per cent of the wagering tax, as well as development agreement payments. Furthermore, casinos also pay an 8.4 per cent tax on retail sports betting qualified adjusted gross receipts and pay an annual fee to cover the state’s regulatory expenses.
During July this year, the three casinos paid $8.6m in wagering taxes to the state compared to $9.4m for the same month last year.
Furthermore, the same casinos reported submitting $12.6m in wagering taxes and development agreement payments to the City of Detroit.
During the same YoY period, casinos’ table games and slot revenues fell 8.4 per cent, however it rose by three per cent compared to June of this year and witnessed a monthly revenue increase of 7.9 per cent compared.
The Michigan Gaming Control & Revenue Act established the casino licence application process and the information applicants must share with the MGCB. The Act directs the MGCB to consider an array of factors including; integrity, moral character and reputation; business probity; financial ability and experience; and compulsive gambling programmes adopted and implemented by the casino.