The MGCB (Michigan Gaming Control Board) has moved to approve the renewal of licenses for three Detroit casinos in a move that will help the state plow in further funds from taxes paid by the relevant establishments.
Casino action in the Great Lakes State, both at physical casinos and online, is very popular, and therefore it’s no big surprise that the MGCB committed to such licenses. Michigan casinos and Michigan casino apps are proving very popular, and recent revenue results for May were up on the same period in 2022.
The process of license renewals is by no means a rubber-stamping exercise, as intimated by the Michigan Gaming Control Board executive director, Henry Williams, who stated;
“Renewing a casino license reflects an ongoing commitment to operate a reputable and responsible establishment,”
“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,” Williams added.
The three casinos in question are the Hollywood Casino in Greektown, the Motor City Casino, and the MGM Grand Detroit.
The MGM Grand Detroit enjoys the lion’s share of the market, around 45%, with MotorCity being just ahead of the Hollywood Casino in terms of revenue generation.
The decision from the MGCB was unanimous and will see a continued tax stream coming into the state purse.
These casinos will be paying 18% in tax, of which 8.1% comes to the state and 9.9% to the City of Detroit. The casinos also pay 8.4% tax in terms of qualified adjusted gross receipts from their sports betting operations.
All casinos are also required to help in the battle against problem gambling and have to display relevant phone numbers for gambling helplines in prominent placements throughout their premises as part of this commitment.
The three casinos will have to renew once again in August 2024.
In June, the three casinos generated gaming revenue of $101.9 million; in comparison, online gambling in Michigan, for May, brought in a revenue of $150 million, with online sports betting accruing profits of $35 million.
The MGM Grand made $47 million in revenue for June, Motor City made $32.5 million, and the Hollywood Casino brought in $22.4 million.
Motor City Casino’s take for the month was negatively hit by a big win. One bettor secured a monumental payout of $972,000.
Michigan is, without a doubt, one of the prime movers when it comes to gaming revenue. In 2022 operators in the state made revenue of around $3.2 billion, which puts the state in fifth place overall among those that allow the pastime.
Nevada sits top of the 2022 list, some way ahead of New York, Pennsylvania, and New Jersey. Just below Michigan are Indiana and Louisiana.