November Revenue at Detroit Casinos Lowest in 22 Years
LISTEN TO THIS ARTICLE:November proved challenging for Detroit’s casino industry, as the city’s three major casinos, MGM Grand Detroit, MotorCity Casino, and Hollywood Casino at Greektown, recorded a notable dip in earnings.
Collectively, they generated $76 million in slot and table game revenue. This figure represents a 28.2% decrease from their average monthly earnings in 2023 before the workers’ strike impacted operations.
MGM Grand Detroit’s Revenues Hit Hard by Strike
The revenue decline was particularly sharp at MGM Grand Detroit. The casino faced a prolonged workers’ strike, which lasted the entire month of November, concluding only with a resolution on December 2. MGM Grand Detroit’s revenue for November was $30.6 million, a 38.2% fall from its average prior to the strike.
Despite these challenges, the strike led to a significant labor agreement. On December 2, after a 47-day dispute, the Detroit Casino Council secured a five-year labor contract with MGM Grand Detroit. The agreement includes significant wage increases, bonuses, and protections for workers, with nearly 4,000 union members voting in favor of the contract.
Related: Detroit Casino Strike Lingers as MGM Refuses to Concede
MotorCity and Greektown Fare Better
MotorCity Casino and Hollywood Casino at Greektown, however, managed to maintain relative stability during this period. MotorCity saw a slight decrease in revenue, from $25 million in October to $24.7 million in November. In contrast, Hollywood Casino at Greektown actually saw an increase, from $19.4 million in October to $20.7 million in November.
Surprisingly, retail sports betting at these casinos hit a yearly high in November. The three casinos together brought in $15.3 million in wagers. MotorCity Casino led in this category, with the highest revenue and handle.
Overall, the strike resulted in an estimated $51.1 million loss in combined revenue for the casinos. This loss, constituting 4.6% of the total $1.12 billion gaming revenue for 2023, has caused concerns with analysts about the casinos’ ability to surpass the previous year’s total revenue of $1.28 billion.
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