Detroit Casinos Weather Revenue Storm Amidst Workers’ Strike

Detroit’s bustling casino scene faced yet another blow to its gambling revenue in November, marking the lowest monthly earnings in 22 years. The three major casinos – MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown – collectively amassed $76 million in slot and table game revenue, reflecting a substantial 28.2% decline from their monthly average in 2023 prior to the workers’ strike.

MGM Grand Detroit Faces Revenue Plunge During Prolonged Strike
Although this figure fell $5.7 million below the October total of $81.7 million, industry insiders note that it is somewhat of a triumph considering the extended impact of the casino workers’ strike throughout November.

The strike had a profound effect on MGM Grand Detroit, which bore the brunt of the revenue downturn, experiencing a strike that persisted for the entire month until a resolution was reached on December 2.

MGM Grand Detroit’s November revenue of $30.6 million plummeted by 38.2%, significantly below the 2023 average prior to the strike.

After a 47-day labor dispute, the Detroit Casino Council successfully negotiated a historic five-year labor agreement with MGM Grand Detroit on December 2, ending the strike that began on October 17.

Nearly 4,000 union members, representing various unions, voted overwhelmingly in favor of the contract, securing substantial wage increases, including an immediate raise of $3 per hour and a cumulative $5 per hour over the contract’s duration. The agreement also includes bonuses, no healthcare cost increases, workload reductions, and unprecedented job and technology protections.

MotorCity and Greektown Casinos Show Stability Amid November’s Strike Fallout
MotorCity Casino and Hollywood Casino at Greektown, in contrast, witnessed relatively stable figures in November, with the strike ending on November 19 for both establishments.

MotorCity Casino, which recorded $25 million in gaming revenue in October, experienced a marginal dip to $24.7 million in November. Hollywood Casino at Greektown, on the other hand, exceeded its October revenue of $19.4 million by reaching $20.7 million in November.

In a surprising twist, retail sports betting revenue at the Detroit casinos reached a yearly high in November despite the workers’ strike. The three establishments collectively raked in $15.3 million in wagers, slightly down from October’s $18.1 million but a marked improvement from November 2022’s figures.

MotorCity Casino emerged as the frontrunner in this category, attracting the highest revenue and handle with $8 million in wagers and $2.2 million in revenue.

Calculating the overall impact of the strike, the three casinos lost approximately $51.1 million in combined revenue.

While this represents only 4.6% of the current $1.12 billion in combined gaming revenue for 2023, industry analysts speculate that this setback might hinder the casinos from surpassing the 2022 combined yearly revenue total of $1.28 billion.

BY: 우리카지노탑

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