Will One of Detroit's Casinos Fold?
April 24th, 2014, 6:29 AM
Will we see one of the local casinos shut down?
Karl Henkel of The Detroit News writes that Detroit, the fourth-largest U.S. gaming market, could lose one of its four casinos: MGM Grand, MotorCity and Greektown, and Caesars Windsor.
“I can’t imagine the three Detroit casinos are going to all survive,” Richard McGowan of Boston College’s Carroll School of Business Management, who closely tracks the industry, tells The News. “I’d be really surprised. I think one will eventually go because the owners are going to say that it is just not worthwhile.”
The News notes that revenue in the market is on pace to fall for the third consecutive year. It doesn't help that the smoke-free gaming casino in Toledo is taking away some of the customers in Southeast Michigan.
The News also notes:
Last year’s expiration of a federal payroll tax holiday, which cut the average American’s income by 2 percent, and continued consumer uneasiness have contributed to casino revenue slowdowns across most of the United States.
Alex Calderone, senior vice president at Fine Point Group, a Las Vegas gaming management and consulting firm, told the News that the Windsor gaming hall is the most likely candidate to fold.