During its monthly scheduled public meeting on 15th August, the Michigan Gaming Control Board voted unanimously to approve the one-year rolling renewal of the licenses for the three authorized Detroit casinos: MGM Grand Detroit, MotorCity Casino and Hollywood Casino at Greektown.
Three votes, which constitutes a quorum for the Board were received in support of the casino license renewals. A commercial casino license in Michigan is issued for a one-year period, and renewed annually after payment of the $25,000 license fee and delivery of annual report under predetermined MGCB rules.
The MGCB will then 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.”
MGCB Executive Director Henry Williams stated: “Renewing a casino license shows a continued promise to run a trustworthy and responsible business. It demonstrates a commitment to upholding high levels of quality, security, and fairness in the industry. The renewal of these licenses confirms the casinos’ dedication to being responsible and valued members of the Michigan community, positively impacting the state’s gambling industry while providing a safe and enjoyable experience for all guests.”
Licensees are taxed at a rate of 18% on adjusted gross receipts and remit their wagering tax daily via electronic funds transfer. The state receives 8.1% and the City of Detroit receives 9.9% of the wagering tax plus development agreement payments. The casinos also pay an 8.4% tax on retail sports betting qualified adjusted gross receipts, as well as an annual fee to cover the state’s regulatory expenses.
The three Detroit casinos will be eligible for further license renewal in August 2024.
All three casinos offer retail sports betting, slots and table games. In addition, Michigan online casino and MI mobile sports betting are also legal and regulated by the MGCB under the Michigan Gaming Control and Revenue Act.
Michigan continues to experience digital channel shift, becoming a global heavyweight in the iGaming market. During 2022, traditional casino gaming revenue reported by Detroit’s three casinos fell year-over-year, per AGA statistics. At the end of 2022, there were a total of 15 online sportsbooks, 14 internet casinos and three online poker platforms.
Commercial casinos reported a 0.8% decline in electronic gaming devices and table games from 2021-2022, and a 30.2% decrease in retail sports betting revenue. Pivot to online is most evident in sports betting, as overall sports betting revenue increased 31.0% despite the 30.2% retail decline.
The Michigan Gaming Control Board has reported that the three Detroit casinos recorded revenue of $477,543 from retail sports betting in the month of July. The casinos took aggregate $107.2 million in total gaming revenue ($106.7 million from table games and slots).