In Detroit, a strike by thousands of casino employees takes place.
- Thousands of casino workers in Detroit have gone on strike.
- They are seeking higher wages and better working conditions.
- Since the last labor contract was signed in 2020, the cost of living has increased.
In addition to auto workers, thousands of casino employees in Detroit have gone on strike for higher wages and better working conditions. The strike involves workers at the MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown.
The Detroit Casino Council, comprised of five unions including the United Auto Workers, represents 3,700 striking employees who work in various positions across the properties, including dealers, cleaning staff, food and beverage workers, valets, and engineers.
Immediately clear was the effect of MotorCity Casino's website update, which revealed the closure of high-limit table games and poker rooms, as well as casino valet, spa, and some restaurants and bars.
FanDuel, in partnership with MotorCity, has announced that its FD Sportsbook will remain closed except for a non-union employee managing the cash at the counter for patrons cashing in tickets, in compliance with Michigan regulatory requirements.
The Hollywood Casino at Greektown expressed disappointment with the decision of the Detroit Casino Council, stating that they have made substantial, forward-thinking settlement proposals that would benefit their employees and business for long-term prosperity. Despite this, the management will continue to operate.
MGM's Midwest Group, led by president and COO Matt Buckley, communicated in a letter to MGM Grand Detroit employees that the company has no plans to close the property.
Our negotiations with the union have resulted in six proposals being made, with our current offer featuring the largest pay increase in MGM Grand Detroit's history. This is a significant proposal.
The Detroit Casino Council claims that casino employees agreed to a three-year contract during the early days of the Covid-19 pandemic. Despite the expiration of the deal, the union argues that the contract included only 3% wage increases, which is insufficient to cover the 20% increase in the cost of living due to high inflation.
While industry gaming revenues have surpassed pre-pandemic levels to reach a new record high, the Detroit casino industry generated $2.27 billion in gaming revenue in 2022 and is on track for another record-breaking year in 2023. Despite this, the three Detroit casinos collectively reported $813 million more in total gaming revenues in 2022 than in 2019, but total wages paid to workers represented by the DCC were $34 million less when comparing those same years.
In 2022, brick-and-mortar casinos generated $1.2 billion in revenue, which was a $200 million decrease from 2019, the year before the Covid-19 pandemic.
To obtain a license to operate, the Detroit Casino Council must partner with land-based casinos and include iGaming and online sports revenues in their revenue numbers, as mandated by Michigan gaming regulators.
The Detroit Casino Council estimates that a day of a strike could result in a loss of approximately $738,000 in city and state tax revenues and $3.4 million in casino operator revenues.
The Culinary Union, with nearly 40,000 members, has authorized a strike in Las Vegas, though it has not yet been called. MGM Resorts and other companies are also facing possible walkouts. Negotiations are ongoing.
Bill Hornbuckle, CEO of MGM, stated during a keynote presentation at the Global Gaming Expo that he and other casino leaders are engaged in intense negotiations. However, he noted that the unions in Las Vegas are being influenced by other attention-seeking strikes.
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