United States: Detroit Casino Revenues Remain Consistent: Michigan Gaming Control Board Releases May 2010 Revenue Reports

On June 8, 2010, the Michigan Gaming Control Board ("MGCB") released the revenue and wagering tax data for May 2010 for the three Detroit, Michigan, commercial casinos. The May revenue figures, as announced by the MGCB, reflect the stability of the Detroit commercial casino market. In May 2010, aggregate revenue and taxes for all three Detroit Casinos fell by less than 1 percent (0.78 percent) as compared to May 2009, and less than 2 percent (1.7 percent) as compared to April 2010.

MGM Grand Detroit Casino maintained its status as the highest revenue-generating Detroit-based commercial casino, increasing its total adjusted gross gaming revenue to approximately $49 million in May 2010 – a 3.4 percent increase when compared to May 2009. Total adjusted gross gaming revenues at MotorCity Casino and Greektown Casino fell to approximately $38 million and $30 million in May 2010 – a respective decrease of 5.1 percent and 1.5 percent when compared to May 2009.

For the three months ending May 31, 2010 (March, April, and May), aggregate revenues and taxes for the three Detroit Casinos increased by 4 percent over aggregate revenues and taxes for the same period last year. MGM Grand Detroit's total adjusted gross gaming revenue for these three months was $151 million – a 7.9 percent increase as compared to the same period last year. Likewise, Greektown Casino reported an increased total adjusted gross gaming revenue of $95 million

this period – a 7.3 percent jump from the same period in 2009. MotorCity Casino's total adjusted gross gaming revenue for this period was $117 million, a decrease of 3 percent when compared to the same period last year.

In terms of market share, MGM Grand Detroit maintained its top position, reporting 42 percent market share for May 2010. MotorCity Casino and Greektown Casino reported market share of 33 percent and 25 percent, respectively. Aggregate gaming taxes paid for May 2010 for the three Detroit casinos were $7.06 million, a significant decrease from aggregate gaming taxes of $10.75 million for the same period last year, as a result of the MGCB's March 9, 2010, approval of Greektown's tax rollback request and the tax rollback credit being applied.

The gaming revenue and wagering tax payments for the MGM Grand Detroit, MotorCity Casino, and Greektown Casino for May 2010 were:

* The state tax rate for MGM and MotorCity was reduced to 8.1% effective as of October 3, 2007 and December 31, 2007, respectively. The state tax rate for Greektown was reduced to 8.1% effective as of March 9, 2010. Greektown used $2.4 million of its tax rollback credit for May taxes. These figures do not include wagering tax payments made to the City of Detroit.

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