MGM Resorts faces potential casino strikes in Detroit and Las Vegas

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MGM Resorts faces potential casino strikes in Detroit and Las Vegas
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Casinos in the Detroit, Michigan area face a potential labor walkout after the Detroit Casino Council announced that members from MGM Grand Detroit, Hollywood at Greektown and MotorCity casinos approved a strike if determined as necessary by the worker negotiating committee. 99% of the union members at those casinos voted in favor of the strike action after negotiations over the last five weeks failed to lead to new labor deal.

In September 2020, the Detroit Casino Council agreed to a three-year contract extension, which it said included minimal wage increases to help the casino operators get back on their feet during the pandemic. Since then, the DCC noted that in 2022 the Detroit casino industry generated $2.27B in gaming revenue through in-person and online gaming, the highest ever in the history of the industry. So far in 2023, reports from January through August show that revenues are even higher than last year, on track for another record-breaking year. The workers are under a three-year extension to an original five-year contract that started in 2015. The DCC could call for a strike within a few weeks.

For its part, MGM Resorts (NYSE:MGM) is also facing a strike action at its properties in Las Vegas. The Culinary and Bartenders Unions negotiating committee is now authorized to call for a strike at 22 casino resorts properties on the Las Vegas Strip spread between some of the largest employers in the state. The Culinary Union said it has not yet set a strike deadline and will continue to negotiate in good faith with all gaming companies.