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Detroit Casinos Reach Deals With Striking Workers

Properties Saw Major Revenue Declines During Month Of October


United Local 24Detroit’s three casinos and union leadership announced a tentative deal on Friday to end a strike after a work stoppage of more than a month.

The city saw dealers, custodial staff, food and beverage staff, valets, engineers, and other employees walk off the job at the MGM Grand, Hollywood, and MotorCity casinos on Oct. 17. The properties have continued operating, but in very limited capacities.

Union officials had signaled that the parties were getting closer to a deal in recent days after Las Vegas casino workers reached a similar resolution to avoid a stand strike of their own. The new agreement will still need to be approved by union workers.

“After months of negotiations and 32 days on strike, the Detroit Casino Council has reached a tentative agreement for a new five-year contract with MGM Grand Detroit, Hollywood Casino at Greektown, and MotorCity casino for 3,700 casino workers,” Unite Here Local 24 posted on Twitter. “Best agreement in history of Detroit casino industry.”

Major Slides In Revenue

Despite staying open during a month-long strike by the city’s casino workers, Detroit’s three casinos saw major drops in revenue for October, according to numbers released by the Michigan Gaming Control Board this week. In total, the casinos reported $82.8 million in revenue for the month. This represented a significant drop at all three casinos.

Table game and slot revenue for October reached $81.7 million with retail sports betting accounting for $1.1 million. MGM led the three properties with 46% of casino revenue followed by MotorCity with 31% and Hollywood with 23%.

For the month, table game and slot revenue decreased 18.9% compared to October 2022. This was also a dip from September of 18.3%. The strike impacted the overall revenue landscape for the year with table game and slot revenue down 1.3% for the period of Jan. 1 – Sept. 30 compared to the same period in 2022.

Retail sports betting also saw a massive drop. Union leadership had encouraged gamblers to avoid betting at the three casinos during the strike. The three casinos accounted for only $18.1 million in retail sports betting handle and total gross receipts of $1.1 million in October.

These numbers equated to a major dip of 46.3% compared to October 2022. That was also a slide of 28.6% compared to September. This was a significant drop, considering the sports world is right in the middle of the NFL season and the hometown Detroit Lions are off to one of the team’s best starts in years.