How are Michigan Casinos Faring in this Economy?

Michigan's economy is down, its unemployment is up and the auto industry is in a battle for its life.

But when it came to spending on lady luck at casinos, the state bucked national trends until winter set in.

Revenue at Michigan's three commercial (non-Indian) casinos was up 1.3 percent in 2008, while commercial casinos around the country saw revenue decline 4.7 percent from record 2007 levels, according to state data and a study by the American Gaming Association.

Michigan's tribal casinos, though not tracked by the association, also saw some revenue growth, based on records of payments they made via their state revenue-sharing agreements.

But growth in that sector was scattered, driven by the first full year of operations at the Four Winds Casino in New Buffalo.

``It's a dynamic where you don't know if it's an aberration, or if it's a peculiarity of the Michigan market,'' said Eric Bush, administrative manager for the Michigan Gaming Control Board, which regulates the state's casinos.

``It doesn't seem to be making a downturn and following the economy.''

The upward trend is not expected to continue, however. Eric Kalm, executive director of the MGCB, said the big question now for the state is how big of a revenue drop it should expect.

For the complete story, please see Chris Knape Michigan's luck about to run out?, Kalamazoo Gazette, May 31, 2009.