The month-long strike by 3,700 workers across MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown is taking a toll on Detroit’s gaming scene. As a result of the ongoing labor dispute, temporary closures have been announced, impacting valet services and various amenities at all three establishments.
Detroit Casinos Face Service Disruptions and Revenue Plunge Amidst Strike Fallout
Despite the casinos remaining open, the absence of valet services has forced patrons to use self-parking garages exclusively. MotorCity Casino, facing additional challenges, has seen closures in high-limit table games, first-floor slots, poker rooms, D.TOUR Spa, Lacquer Gift Shop, and the radio bar.
Hollywood Casino at Greektown has adjusted its services, reducing restaurant hours and impacting beverage offerings. While the strike has led to a decline in revenue, the resolve among striking workers remains high.
The Michigan Gaming Control Board revealed substantial revenue losses for October, the month when the strike began. Each casino reported losses ranging from $5 million to $7 million. The market shares for October were 46% for MGM, 31% for MotorCity, and 23% for Hollywood Casino at Greektown.
The financial impact is evident in the October revenue figures, showing an 18% drop in revenue compared to the previous month. The three casinos collectively reported $82.8 million in revenue, with MGM leading at $37.3 million, down 19.6%, followed by MotorCity with $25 million, down 22.8%, and Hollywood Casino at $19.4 million, down 11.7%.
Detroit Casino Council Keeps on Fighting for Workers’ Rights
Taxes paid to the state and city also decreased significantly, with a total decline of $3.9 million compared to October 2022. The workers’ strike, which began on October 17, has affected not only gaming revenue but also retail sports betting, which recorded a 23% decline in handle, dropping to $18.1 million.
The impact on retail sports betting revenue is substantial, with a 46.9% year-over-year decrease. The MGM Grand Detroit saw the most significant decline, recording just $4.7 million in handle, a 51.1% drop from October 2022.
As the strike continues into November, the future looks challenging for Detroit’s gaming industry, with potential greater losses anticipated in the coming months.
The Detroit Casino Council, representing workers from five different unions, is advocating for improved healthcare, better wages, job security, and fair workloads. Kimberly Rector, a MotorCity worker, conveyed that they feel appreciated outside because there is a lack of appreciation inside and they will keep on striking until they achieve what they want, reported Fox 2 Detroit.
