Toledo casino cited in drop in revenues at Detroit’s 3

12/12/2012

Editor's note: The casino in Cincinnati is scheduled to open March, not February.

Hollywood Casino Toledo apparently has cut into the profits of the three Detroit casinos.

Since the Toledo casino opened in late May, revenues at the MGM Grand Detroit, MotorCity, and Greektown casinos have declined 2.1 percent compared with a year ago, according to figures released by the Michigan Gaming Control Board and reported by the Detroit News.

The three casinos’ revenues rose 2 percent in the first five months of the year — before Toledo's casino opened.

“Unquestionably, the property in Toledo has cannibalized from the Detroit Three,” Alex A. Calderone, a casino expert with Conway MacKenzie Inc., told the News. “I don't foresee a ton of growth on the horizon.”

The numbers seem to indicate that some gamblers from northwest Ohio and southeast Michigan who went to Detroit’s casinos are now visiting Hollywood Casino Toledo instead. Another factor could be that, unlike the Detroit facilities, Toledo’s casino is smoke-free, which some gamblers find attractive.

Last month’s adjusted gross revenue at the Hollywood Casino Toledo fell to about $13.6 million from $14.8 million in October, according to numbers released by the Ohio Casino Control Commission.

The casino’s monthly revenue has dropped each month since June, its first full month of operation. General manager Richard St. Jean said recently that the casino expected revenues to drop as the novelty diminished, but that an uptick is expected next year as the casino expands its loyalty programs.

The Toledo casino is one of three opened in Ohio this year, with a fourth — in Cincinnati — scheduled to open in March.