Detroit casino revenues continue to fall

Revenue at MGM Grand Detroit fell 4.1 percent to US$47 million; at MotorCity Casino, it dipped 3.8 percent to US$38.2 million; and at Greektown Casino, it plummeted 13.6 percent to $27.1 million. April had eight weekend days, the same number as in April 2013.

Local gaming revenue is on pace to fall for the third consecutive year, a trend prompted in part by a new, smoke-free gaming hall just an hour away in Toledo. The city of Detroit stands to lose about US$10 million a year in gaming taxes as revenue at Detroit’s three casinos continues to head south.

In 2012, Detroit took in US$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.

“I can’t imagine the three Detroit casinos are going to all survive,” said Richard McGowan of Boston College’s Carroll School of Business Management, in an interview last month. “I’d be really surprised. I think one will eventually go because the owners are going to say that it is just not worthwhile.