Profits for the Cleveland casino are enormous, so why is Dan Gilbert looking to sell?

It's being widely reported that Dan Gilbert, owner of the Cleveland Cavaliers, is looking to get out of the casino business.

Bloomberg is reporting that Gilbert has hired multiple companies to shop around for buyers of his Cleveland, Cincinnati and Detroit casinos.

It doesn't appear it's because of lack of success, at least in Cleveland.

According to records from the Ohio Casino Control Commission Gilbert's Jack Casino, once named the Horseshoe Casino, is still extremely profitable but but it has fallen off slightly since opening in 2012.

Horseshoe/Jack Casino AGR by year

Casinos in Ohio are required to report Adjusted Gross Revenue (AGR) every month.

AGR is the amount of money the casino takes in, after it's paid out winnings:

  • 2012 $176,388,083 (partial year, opened in May)

  • 2013 $242,646,044

  • 2014 $220,395,202

  • 2015 $212,718,391

  • 2016 $203,576,507

  • 2017 $201,453,963

  • 2018 $118,061,731 (through July)

Of the AGR the casino must pay 33 percent to the state in taxes, the rest is the casinos profit.

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