MGM Resorts International’s MGM Grand Detroit hotel stands in Detroit on Oct. 30, 2013.
Bryan Mitchell | Bloomberg | Getty Images
Thousands of casino workers in Detroit are on strike, not just auto workers. Seeking improved wages and working conditions due to the rising cost of living, these casino employees walked off their jobs on Tuesday. The strike affects operations at the MGM Grand Detroit, owned by MGM Resorts International, as well as MotorCity Casino and Hollywood Casino at Greektown, both owned by Penn Entertainment.
The strike involves approximately 3,700 workers in various positions, such as dealers, cleaning staff, food and beverage workers, valets, and engineers. These casino workers are represented by the Detroit Casino Council, which consists of five unions, including the United Auto Workers.
The impact of the strike was immediately noticeable. MotorCity Casino, for example, announced the closure of its high-limit table games and poker rooms, casino valet services, spa, and some restaurants and bars on its website. FanDuel, which operates the FD Sportsbook with MotorCity, also stated that it will be closed, except for a non-union employee managing cash transactions for ticket holders, in compliance with Michigan regulatory requirements.
Hollywood Casino at Greektown expressed disappointment in the strike and stated that they have made generous settlement offers that promote the well-being of their team members and business sustainability. They remain open for business.
Matt Buckley, president and COO of MGM’s Midwest Group, assured employees of MGM Grand Detroit that the company intends to keep the property operational during the strike. He emphasized that their offer to the union included the largest pay increase in the history of MGM Grand Detroit.
The casino workers argue that they agreed to a three-year contract during the early days of the Covid-19 pandemic, which has now expired. Despite a 20% increase in the cost of living due to high inflation, their wages only saw a 3% raise. Meanwhile, the Detroit Casino industry has seen record-breaking gaming revenue in recent years.
However, brick-and-mortar casinos have experienced a decline in revenue, about $200 million, in 2022 compared to 2019 due to the Covid-19 pandemic. The Detroit Casino Council revenue figures include iGaming and online sports revenues.
The Detroit Casino Council estimates that each day of the strike could jeopardize around $738,000 in tax revenues for the city and state, as well as $3.4 million in casino operator revenues.
Similar strikes are also looming in Las Vegas for MGM Resorts, Caesars Entertainment, and Wynn Resorts. The Culinary Union, with nearly 40,000 members, has authorized a strike, but it has not been called yet. Negotiations are ongoing.
MGM CEO Bill Hornbuckle, speaking at the Global Gaming Expo, acknowledged the challenging negotiations with the unions in Las Vegas. He highlighted that the demands presented by the United Auto Workers in Detroit, such as a 40% increase, can’t be disregarded. However, he emphasized the importance of the well-being and livelihood of employees being relevant in these local negotiations.
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