November’s Detroit casino revenue was the lowest in 22 years thanks to a worker’s strike that has taken its toll on the three Motown gambling palaces. Let’s see how this process affected Detroit’s sports betting industry and the state’s overall tax income.
No Casino Spared
The three Detroit casinos were all affected by the worker’s strike and reported numbers that hadn’t been seen since 2001. Workers at MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greek Town were all adversely impacted by the strike.
Contrary to the online sportsbooks‘ stability, November’s revenues for Detroit showed a combined $79.1 million adjusted gross revenue, which was over 28% less than the pre-strike monthly average of $105.9 million this year. Casino gaming (slots and table games) combined for $76 million, while in-person sports betting accounted for the remaining $3.1 million.
This year’s take was 23.9% less than November 2022’s $99.9 million because of the strike and the market shares in November 2023 were as follows:
- MGM: 39% ($30.6 million)
- MotorCity: 34% ($24.7 million)
- Hollywood Casino at Greektown: 27% ($20.7 million)
The three sportsbooks generated a combined handle of $15.3 million in November which delivered over $3 million in revenue. Taxes on those November sportsbook profits produced $142,718 for the City of Detroit, while $116,769 was paid to the state.
Strike Settled
Workers at the MotorCity Casino and Hollywood Casino in Greek Town were the first to settle their contract disputes. After 34 days, the strikes at those facilities were over. It would take nearly two weeks longer for MGM to come to terms with their workers and, ultimately, the strike ended 47 days after it began. The Detroit Casino Council represented workers at all three casinos.
The casino workers at MGM reached an agreement on a five-year pact that provided an immediate 18% increase for workers across the board. Health care costs were frozen and bonuses were added to the deal, as well as a $5 an hour increase spread out over five years, on top of the instant pay increase that worked out to an average of $3 per hour.
We should also note that a few new wrinkles added in the deal included a reduced workload provision and advanced notice of any new technology that could impact the casino workers’ jobs.
Matt Buckley, president and COO of Midwest Group, MGM Resorts International, said in a statement, “We’re glad our DCC-represented employees voted tonight to ratify the 64-month contract and end the strike, allowing us to immediately resume full and normal operations at MGM Grand Detroit. We’re excited to welcome our team back and continue providing our guests the entertainment experiences for which MGM Grand Detroit is known.”
“Both my son and I have been on strike together, so for me, the fight to protect our healthcare and win better wages was always about something bigger for my family and the next generation,” said MGM guest room attendant Alicia Weaver in a news release. “Together – with the rest of our MGM family who stood with us on that picket line in the rain and frigid temperatures – we made history, and I’m proud of what we accomplished by taking a stand together.”
Calculators
