Michigan
Michigan’s skyrocketing unemployment rates and shaky auto industry may finally be finding themselves reflected in the state’s casino industry. Despite combined reported revenues of $1.335 billion in 2007 from the state’s three licensed commercial casinos, the Michigan Gaming Control Board has reported that revenue growth is slowing. Growth was at 2.4 percent for 2007, down significantly from 6.1 percent in 2006. Individually, the MGM Grand Detroit grew its already healthy market share to 38.5 percent, with revenues up 4.9 percent to $513 million. In 2006, it weighed in with a 37.6 percent market share and $490 million in revenues. The MotorCity Casino maintained its market share at 36 percent while revenues rose 2.5 percent, from $469 million in 2006 to $480 million in 2007. Greektown Casino, meanwhile, suffered a .9 percent market share hit, falling from 26.5 percent in 2006 to 25.6 percent. Its revenues were down as well, from $345 million to $341 million, a 1.1 percent drop.
New Jersey
Revel Entertainment Group has the Atlantic City Housing Authority to thank for freeing up $53 million in funds for an in-the-works $2 billion casino project on the South Inlet. After the Housing Authority dropped a reverter clause from its agreement with Revel, the company was able to access the cash, which had been held in escrow. Reverter clauses are meant to ensure that developers move forward with projects in a timely manner and are typically included in Housing Authority agreements. Its decision to lift the clause, which came just a week after a flat-out refusal to do so, came as the City Council made motions to pass an ordinance that would remove redevelopment issues from under the Housing Authority’s power.
Pennsylvania
A new report from Spectrum Gaming reveals that four of Pennsylvania’s casinos landed in the Top Five revenue spots for the East Coast during fall 2007. Taking the number one “slot” was the Mohegan Sun at Pocono Downs, with an average of $403 in win per day per machine during September and November 2007. Rounding out the Top Five were Connecticut’s Mohegan Sun with $390 per day per machine; Philadelphia Park with $369 per day per machine; the Meadows with $347 per day per machine; and Harrah’s Chester with $322 per day per machine.
Pittsburgh’s Planning Commission unanimously approved the design for Don Barden’s new Majestic Star casino on the city’s North Shore in mid-January, despite complaints from the River Life Task Force. The task force argues that the Majestic Star’s 119-foot-tall parking garage will be a blight on the city’s skyline. Barden has already agreed to add a decorative screen to the side of the garage that faces the Allegheny River, which brought Mayor Luke Ravenstahl and Allegheny County Executive Dan Onorato onboard with the design. If the task force decides to file an appeal, the issue will be put in front of the state’s Supreme Court, but as of CEM’s press time, no legal action had been initiated.