Detroit casinos struggle amid ongoing labor strike.

Jafar224

During the past month, the MGM Grand Detroit, MotorCity Casino, and Greektown Casino in Detroit have been adversely affected by a prolonged labor strike. A total of 3,700 workers participated in the strike due to a long-standing labor dispute, resulting in the temporary closure of guest services and various facilities at all three locations.

Following the strike, Detroit casinos are grappling with service disruptions and a sharp decline in revenue. Although the casinos remain open to the public, the lack of guest services forces patrons to handle parking themselves. MotorCity Casino faced additional challenges and decided to close high-stakes gaming tables, first-floor slot machines, poker rooms, D.TOURSpa, lacquer gift shops, and the Radio Bar.

Greektown's Hollywood Casino adjusted its services by reducing restaurant operating hours, impacting beverage availability. Despite the revenue downturn caused by the strike, the determination of the striking workers remains strong.

According to the Michigan Gaming Control Board data, the October strike resulted in substantial revenue losses, with reported losses ranging between $5 million and $7 million for each casino. In terms of market share, MGM Grand holds 46%, MotorCity Casino has 31%, and Greektown Hollywood Casino accounts for 23%. The financial impact is evident in the October revenue data, with an 18% decline compared to the previous month. The total revenue for the three casinos was $82.8 million, with MGM Grand leading at $37.3 million (down 19.6%), followed by MotorCity Casino at $25 million (down 22.8%), and Hollywood Casino at $19.4 million (down 11.7%).

The Detroit Casino Commission has steadfastly advocated for workers' rights and continues its efforts. In comparison to October 2022, the amount paid in taxes to the state and city significantly decreased by a total of $3.9 million. The worker strike, starting on October 17, not only impacted gambling revenue but also had a negative effect on retail sports betting, with a 23% decrease to $18.1 million.

Compared to the same period last year, retail sports betting revenue declined by 46.9%. The MGM Grand Detroit Hotel experienced the most severe decline in revenue, reaching only $4.7 million, a 51.1% drop from October 2022.

As the strike extends into November, the Detroit gambling industry faces additional challenges, and it is expected to incur even greater losses in the coming months.

Representatives from five different unions, advocating for healthcare improvements, increased wages, job security, and fair workloads, have appealed to the Detroit Casino Commission. Kimberly Rector, a worker at Detroit MotorCity, expressed that despite external recognition, they still lack a sense of acknowledgment. Therefore, they intend to continue the strike until they achieve the desired benefits and goals for Detroit's 2nd casino.

977Iti

The strike is a lose-lose situation, with both sides suffering – workers without income and casinos lacking profitable revenue. Hopefully, a successful negotiation can be reached for a smooth resumption of operations.

Isha000

Of course, there is a reason behind the strike.

Ritu77

Those who choose to strike are giving up their own income as well, aren't they?

Samiksha

When it comes to strikes, it depends on the reasons.