Challenges in turbulence modeling in the tip region of turbomachines include anisotropy, inhomogeneity, and non-equilibrium conditions, resulting in poor correlations between Reynolds stresses and the corresponding mean strain-rate components. The geometric complexity introduced by casing grooves exacerbates this problem. Taking advantage of a large database collected in the refractive index-matched liquid facility at Johns Hopkins University (JHU), this paper examines the effect of axial casing grooves on the distributions of turbulent kinetic energy (TKE), Reynolds stresses, anisotropy tensor, and TKE production rate in the tip region of an axial turbomachine. The comparisons are performed at flowrates corresponding to prestall and best efficiency points of the untreated machine. Common features include high TKE near the tip leakage vortex center and in the shear layer connecting it to the blade suction side tip corner. The turbulence is highly anisotropic and inhomogeneous, with the anisotropy tensor shifting from one-dimensional (1D) to 2D and 3D structures over small distances. With the grooves, the flow structure, hence the distribution of Reynolds stresses, becomes more complex. Additional sites with elevated turbulence include the corner vortex that develops at the entrance to the grooves, and in the flow jetting out of the grooves into the passage. Consistent with trends of the production rates of normal Reynolds stress components, the grooves increase the axial but reduce the radial velocity fluctuations as the inflow and outflow from the groove interact with the passage flow. These findings might assist the development of Reynolds stress models suitable for tip flows.