June 10, 2014 at 10:13 pm

Decline in Detroit casino revenue not as steep in May

Revenue at MGM Grand Detroit fell 2 percent to $47.4 million. (Daniel Mears / The Detroit News)

The Detroit casino revenue decline slowed in May, buoyed by warmer weather and an extra weekend day of gaming.

Revenue totaled $114.6 million at Greektown, MGM Grand and MotorCity casinos last month, a decline of 1.7 percent compared to May 2013.

Revenue at MGM Grand Detroit fell 2 percent to $47.4 million; at MotorCity Casino, it dipped 1.4 percent to $39.1 million; and at Greektown Casino, it dropped 1.9 percent to $28.1 million.

May had 10 weekend days — Fridays and Saturdays — versus nine during May 2013.

Revenue has now fallen 5.2 percent through the first five months of the year compared to the same time period a year ago.

Local gaming revenue is on pace to fall for the third consecutive year, a trend prompted in part by a smoke-free gaming hall just an hour away in Toledo.

The city of Detroit stands to lose about $10 million a year in gaming taxes as revenue at Detroit’s three casinos continues to head south, according to tax revenue analysis conducted by The Detroit News.

In 2012, Detroit took in $171 million in taxes from gaming operations, representing about 14 percent of money taken in by the city.

The Detroit casino market — when including a gaming hall in Windsor — has actually declined about 16 percent since 2001 when accounting for inflation, which has fueled speculation that one casino could go under.

khenkel@detroitnews.com
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