As the Detroit casino worker strike reaches over a month, recent revenue numbers for the city’s three properties show the toll the work stoppage has had on the industry.
According to the Michigan Gaming Control Board, Detroit casinos report $82.8 million in October revenue – down double digits from the same month in 2022. Despite the numbers, workers and management might be getting closer to reaching a deal.
“We are down to the core economic issues, and we are waiting on a response from the employers to our current economic proposal,” union leadership said in a statement to The Detroit News. “It’s absurd that Detroit’s profitable casino industry is forcing workers to stay out in the cold to protect their healthcare and achieve decent raises.”
Inside the Numbers
In total, October saw $81.7 million from table games and slots with $1.1 million from retail sports betting. MGM casinos accounted for 46% of overall casino revenue with MotorCity grabbing 31% and Hollywood Casino at Greektown checking in with 23%.
The numbers showed major slides. Table game and slot revenue decreased 18.9% compared to October 2022 and was down 18.3% from September.
From Jan. 1 through Sept. 30, table game and slot revenue decreased 1.3% compared to the same period last year. Here’s a look at all three properties compared to October 2022:
- MGM – down 19.6% to $37.3 million
- MotorCity – down 22.8% to $25 million
- Hollywood Casino at Greektown – down 11.7% to $19.4 million
Sports betting took a major hit in the state as well. Unions have been asking gamblers to avoid wagering with the three casinos while the strike is on and that may have had an impact. The casinos reported $18.1 million in retail sports betting handle and total gross receipts of $1.1 million in October. This put retail betting qualified adjusted gross receipts down 46.3% when compared to October 2022. This was also down by 28.6% compared to September.
The strike also affected tax revenue paid to the state – with $6.6 million paid in gaming taxes compared to $8.2 million in October 2022.
When the strike will end remains to be seen, but the recent deal reached with Las Vegas hospitality workers may signal some hope the end is near. The Detroit strike affects 3,700 dealers, cleaning staff, food and beverage staff, valets, engineers, and more.
“Las Vegas casino workers are settling the best contracts in their history just like Atlantic City did last year — contracts with the largest wage increases ever, reduced workloads in housekeeping, and advancements in technology, health and safety,” the Detroit Casino Council union coalition noted. “We’re dealing with some of the same players here, so why should Detroit be treated any differently? It’s time for Detroit’s casinos to give the people of Detroit the respect we are due.”
Atlantic City Boardwalk Fire Affects Resorts Casino
In other news, New Jersey’s famous Atlantic City boardwalk was the scene of a fire last Wednesday near the entrance of Resorts casino. The blaze melted part of the property’s facade and a canopy, and also burned the doors. No one was injured, but there was damage to the boardwalk itself as well.
Resorts remained open after the incident. However, two restaurants were closed temporarily, reopening later in the day. Diners in the two venues quickly noticed smoke billowing out from below the boardwalk.
“We ate some more and then I saw the smoke was getting thicker and thicker,” a diner from Shrewsbury, Pennsylvania, told ABC News. “Then I saw one of the workers in the restaurant run outside with a fire extinguisher to try to put it out, but the flames were already too big, and he ran back inside the restaurant and told us all to evacuate.”
Investigators said the fire started about 4 p.m. with flames rising through the boards of the famed tourist destination. Strong winds quickly helped the fire surge, Atlantic City Fire Chief Scott Evans said. Dark smoke filled the air near Resorts.
Gamblers were still able to enter the casino via entrances near parking areas and through a secondary Boardwalk entrance. Evans called the two-alarm fire “pretty serious” and battling the blaze required about 30 firefighters.
Firefighters were forced to cut through a section of the boardwalk using chainsaws and had the fire under control after 40 minutes. Officials haven’t determined the cause of the fire, but had a few theories. According to ABC, some of those included “an electrical malfunction from utilities running underneath the walkway or that the fire might have been caused accidentally by homeless people taking shelter under the walkway, a not-infrequent event in Atlantic City.”
