According to the Michigan Gaming Control Board, revenues reported for October 2007 by MotorCity Casino have fallen for the third straight month. In October, the Ilitch-owned gaming hall, with its 5-month-old expanded gaming floor, reported revenues of close to $37.71 million; making October the second lowest performing month in 2007. Only May (the month prior to the opening of the newly expanded gaming floor) has had lower reported monthly revenues at $36.79 million.
Moody's reported to creditors that MotorCity Casino had completed construction and opened its newly expanded (25% larger) gaming floor in early June 2007. The casino saw a bump in revenues for June and July but since then revenues have fallen with each new month and in October were at pre-expansion lows. MotorCity Casino has faced a few hurddles this fall including a threatened strike, a one-day closure, loss of the hotel's VP of operations and the delayed opening of its 400-room hotel.
Source: Michigan Gaming Control BoardAnalysts have expressed concern that MotorCity Casino hasn't performed to expectation and as such both Moody's and Standard & Poor's have both downgraded the credit ratings for MotorCity Casino's parent company CCM Merger, Inc. formed by Marian Ilitch in 2005 to facilitate the acquisition of Detroit Entertainment LLC d/b/a MotorCity Casino.
The investment in the expansion of the casino's gaming facilities have yet to yield and sustain any consistent new revenues.
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