On October 23, an overflow crowd of more than 700 striking union workers from MGM Grand Detroit, MotorCity Casino and Hollywood Casino at Greektown filled the city council meeting room and beyond.
Cheering and blowing whistles, and wearing blue t-shirts stating, “Detroit Casino Council Solidarity,” the workers asked council members to support “fair contracts in a time of corporate greed.” Afterwards, the council unanimously approved a resolution supporting the striking workers.
The resolution reads, “Despite the rapid recovery of Detroit’s casinos, they are still operating with 1,500 fewer workers than before the pandemic, meaning that current employees are forced to shoulder the extra workload without additional compensation. The Detroit City Council supports working people across every sector of our economy and recognizes that working people deserve respect, adequate workplace protections and the right to a living wage.”
More than 3,700 union workers at the three Detroit casinos recently walked off the job over contract issues including healthcare, wage increases, workload standards and job security, as well as concessions workers made during the pandemic. Striking workers include dealers, cleaning staff, food and beverage workers, valets and engineers. The casinos and their hotels remain open, but some services are not currently available, according to their websites.
Detroit officials said the three casinos generate an estimated $450,000 per day in gaming taxes for the city, the third-largest source of tax revenue per city financial data. In the current fiscal year, starting July 1 for Detroit, on-site gambling will produce about $158.5 million in revenue for the city; online gaming will generate about $89.8 million.
City spokesman Corey McIsaac said Mayor Mike Duggan has had “regular conversations” with representatives and companies currently impacted by the strikes. She said the mayor “has offered assistance in any way that would be helpful, and those conversations are ongoing. The mayor believes in the collective bargaining process and has encouraged the parties to reach a mutual agreement as soon as possible.”
Detroit Chief Financial Officer Jay Rising said in a statement, “The city of Detroit is prepared to manage through short-term disruptions in revenue because the mayor and city council have worked together over the years to create a fiscal plan that is based on financial resiliency. We are hopeful that a fair agreement can be reached between the casinos and the casino workers’ unions soon.”
McIsaac added the city is monitoring the impact of the strikes on tax revenues and is “prepared for the possibility of periods of economic downtown and has reserves established.”
In September 2020, casino workers agreed to a 3-year contract extension with small wage increases to help the industry revive after the pandemic. Since then, Detroit casino workers have received 3 percent raises, while inflation in Detroit has risen. However, in February, the three casinos posted combined gaming revenue of $105.5 million, surpassing pre-pandemic levels, based on Michigan Gaming Control Board data.
Last year, the Detroit casinos generated a record $2.27 billion in gaming revenue and, according to the city council resolution, they expect 2023 to be another record-breaking year.
Meanwhile, across the Canadian border, Windsor-Essex Pelle Island Chief Executive Officer of Tourism Gordon Orr invited American gamblers to Caesars Windsor, where they can enjoy world-class experience without crossing picket lines.
In an interview with CTV News, Orr said, “We take no pleasure in the fact that we know that our U.S. gaming friends are in this strike position. But at the same time, we want to recognize that we have a similar offering that has a quality experience on this side of the border. For anyone that wants a world-class gaming experience without having to cross that picket line, certainly Caesars Windsor is an option for them.”
Orr noted Caesars Windsor is the region’s top tourist attraction, with “world-class gaming, a 5,000-seat Coliseum with A-List entertainment, restaurants, two hotel towers.” He added, “Gamers are very loyal and we’ve got the number one brand in gaming. The American market, Michigan, Ohio, are very, very important to the region. Caesars Windsor plays a huge draw and upwards of 33 per cent of our American visitation is a direct result of those coming over to experience world-class gaming at Caesars Windsor.”
The Ontario Lottery and Gaming Corporation (OLG) recently announced the city of Windsor has received a second-quarter payment of more than $2.3 million for hosting Caesars Windsor. So far during OLG’s fiscal year from April 1, 2023 to March 31, 2024, Windsor has received more than $5.7 million. Since the venue opened in May 1994, the city of Windsor has received more than $88 million.
Orr told CTV, “Windsor-Essex enjoys over 4.4 million visitors a year and that helps support regionally about 10,000 jobs. At the same time, they leave behind a direct spending of $669 million. So, we want to see that money, that economic benefit increase.”
