MGM Resorts International’s MGM Grand Detroit hotel stands in Detroit on Oct. 30, 2013.
Bryan Mitchell | Bloomberg | Getty Images
Auto staff aren’t the one ones on strike in Detroit. 1000’s of casino staff, looking for higher wages and higher working conditions, walked off the job in town Tuesday. Casino staff are looking for higher wages and higher working conditions as the associated fee of living has increased lately.
The work stoppage targets operations on the MGM Grand Detroit, owned by MGM Resorts International; MotorCity Casino; and Hollywood Casino at Greektown, owned by Penn Entertainment.
Striking employees include 3,700 staff employed in positions across the properties, including dealers, cleansing staff, food and beverage staff, valets, engineers and more. They’re represented by the Detroit Casino Council, which is made up of 5 unions including the United Auto Staff.
The effect was immediately clear. MotorCity Casino updated its website showing that high-limit table games and poker rooms in addition to casino valet were closed, along with its spa and a few restaurants and bars.
FanDuel, which operates the FD Sportsbook at the side of MotorCity, told CNBC it’ll be closed except for a non-union MCC worker managing the money on the counter for patrons needing to money in tickets, which keeps with Michigan regulatory requirements.
The Hollywood Casino at Greektown said in a press release to CNBC, “We’re dissatisfied by the choice of the Detroit Casino Council as we’ve made generous, progressive settlement offers that position our team members and business for sustainable success.” The management says it’ll remain open for business.
Matt Buckley, president and COO of MGM’s Midwest Group, sent a letter to employees of MGM Grand Detroit that made clear the corporate also intends to maintain the property open and running.
“Regarding the status of our negotiations, we have made six proposals to the union and our current offer includes the only largest pay increase within the history of MGM Grand Detroit. It’s a major proposal,” he wrote.
The Detroit Casino Council argues casino staff agreed to a three-year contract in the course of the pressure-packed earlier days of the Covid-19 pandemic. The deal, which has now expired, included 3% wage increases at the same time as the associated fee of living has surged 20% amid high inflation, based on the union.
“In contrast, industry gaming revenues have now surpassed pre-pandemic levels to succeed in a latest record high,” the Detroit Casino Council wrote in a news release. “In 2022, the Detroit casino industry generated $2.27 billion in gaming revenue and is on course for one more record-breaking yr in 2023. The three Detroit casinos collectively reported $813 million more in total gaming revenues in 2022 than in 2019, but total wages paid to staff represented by the DCC were $34 million less when comparing those self same years.”
But brick-and-mortar casinos saw revenues of $1.2 billion in 2022, a few $200 million decline from 2019, before the Covid-19 pandemic.
The Detroit Casino Council revenue numbers include iGaming and online sports revenues. They’re required by Michigan gaming regulators to partner with land-based casinos to get a license to operate.
The Detroit Casino Council estimates every day of a strike could put roughly $738,000 in city and state tax revenues and $3.4 million in casino operator revenues in danger.
MGM Resorts, Caesars Entertainment and Wynn Resorts are also facing possible walkouts in Las Vegas. Nearly 40,000 members of the Culinary Union have authorized a strike, though it hasn’t yet been called. Negotiations are ongoing.
MGM CEO Bill Hornbuckle told CNBC during a keynote presentation on the Global Gaming Expo last week that he and top leadership from the opposite casinos are involved in intense negotiations. But he said the unions in Las Vegas are influenced by other attention-grabbing strikes.
“It doesn’t help when UAW in Detroit is asking for 40%. I mean, that is a top line that is hard to disregard,” Hornbuckle said on the time. “That being said, I feel what matters here locally is people’s ability, particularly on the front line to exist, to pay rent and to get to the subsequent step in life. And so I feel that is what’s relevant.”
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