Detroit casino revenue drops as union members strike
Detroit's three gaming companies saw combined monthly revenue drop 18.3% in October as union members went on strike.
The Michigan Gaming Control Board reported this week that casino revenue fell between 16.5% and 20.2% in October compared with September figures.
- MGM Grand Detroit reported revenue of $37.3 million last month, down 16.5% from September.
- MotorCity Casino Hotel reported revenue of $25 million, down 19.2%.
- Hollywood Casino in Greektown reported revenue of $19.4 million, down 20.2%.
About 3,700 members of the Detroit Casino Commission (DCC) went on strike on October 17th. The shutdown has lasted for nearly a month.
MONTHLY DROP
The three casinos took in $82.8 million last month. About $81.7 million came from table games and slot machines, and $1.1 million came from sports betting.
These totals are lower than the previous three months. The three casinos took in $99.9 million in September, $104.5 million in August and $106.7 million in July.
Revenues for various gaming operators also declined compared to October 2023 and October 2022.
- MGM Grand down 19.6%
- MotorCity fell 22.8%
- Greektown Hollywood Casino down 11.7%
Meanwhile, qualified adjusted gross revenue (QAGR) for retail sportsbooks fell 28.6% in October 2023 compared to September 2023.
STRIKE UPDATE
The union and management still need to agree on a new contract. Earlier this month, the casino company proposed reducing the health care bonus from $60 to $40 in the first year of the contract and increasing wages by $1.95 per hour. The union wants health insurance premiums to remain zero for the first year and wages to increase by $3.25 an hour.
In response to the strike, all casinos are limiting valet parking. MotorCity Casino also temporarily closed its high-limit gaming tables, first-floor slot machines and poker room. The strike affects restaurants and bars at the Hollywood Casino in Greektown.
Union members asked people not to enter the casino. They also want players to avoid online gambling sites associated with casinos such as Fan Duel, ESPN BET, Hollywood iCasino and BetMGM.
DCC unions include Unite Here Local 24, United Auto Workers, Teamsters Local 1038, Operating Engineers Local 324 and the Michigan Area Carpenters Council. The striking union members work in fields such as credit card dealers, janitors, food and beverage workers, servers and engineers.
PICKET CONTINUE
Striking workers appear to insist they want a contract that meets their priorities, which is why the picketing continues.
I walked out here and I'm tired," Mary, a 72-year-old MotorCity Casino employee, recently told Detroit TV station WJBK."We're not going back there until we get what we want. "
In Las Vegas, members of the Culinary Union averted a strike threat last Friday after agreeing to a temporary contract with the casino company.
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Source: www.casino.org
