As the Detroit casino workers’ strike approaches its one-month anniversary, the situation remains unresolved and tensions continue to mount. The financial implications are becoming increasingly apparent: the city is losing vital tax revenue and several planned events at the casinos have been canceled. In response, the unions are intensifying their efforts, advocating for a boycott of online gambling platforms linked to the casinos and their parent companies.
Since October 17, over 3,700 unionized workers from five unions, collectively known as the Detroit Casino Council, have been off duty. This labor dispute involves three major casinos – Hollywood Casino at Greektown Detroit, MGM Grand Detroit, and MotorCity Casino-Hotel. Despite resuming negotiations on October 26, there’s been no breakthrough in the deadlock.
This strike marks a historic first for the Detroit casino workforce since the opening of these establishments over two decades ago. The economic impact is significant. The city of Detroit typically garners around $450,000 per day from on-site gaming taxes from these casinos, with the total tax revenue from January to September nearing $122 million, as per the Michigan Gaming Control Board.
Despite a robust September 2023 performance, with the casinos generating $101.6 million in aggregate revenue, the strike’s timing in October means the full financial consequences are yet to be fully realized.
In the backdrop of these financial figures, the unions have highlighted that the Detroit casino industry accrued $2.27 billion in gaming revenue in 2022, a number disputed by the Michigan Gaming Control Board, which cites a figure closer to $1.2 billion. The discrepancy arises from the inclusion of online gaming and sports betting revenues in the unions’ figure, revenues that do not directly benefit the casinos.
Amidst the ongoing strike, casino officials had maintained a ‘business as usual’ stance, but the situation has compelled some organizations to relocate their events. Notably, the National Kidney Foundation of Michigan shifted its Kidney Ball from MotorCity Casino to another venue.
The strike has also spawned a new digital ad campaign, urging the public to boycott online gaming platforms affiliated with the striking casinos. This campaign is a strategic move to bolster the striking workers’ position, as they demand fair contract terms after enduring hardships during the COVID-19 pandemic. The Detroit Casino Council, comprising various unions representing a diverse range of casino employees, remains steadfast in its pursuit of improved contract conditions.
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