Mayor: Detroit Casinos Will Not Fully Reopen Until There Is COVID-19 Vaccine

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Written By Matt Schoch on May 6, 2020
Detroit casinos reopen

Island Resort & Casino, a tribal casino in the Upper Peninsula, recently changed its reopening plans, opting to target May 16 for gaming instead of the previously announced Wednesday.

However, the fact that a casino in one of the states most severely affected by the COVID-19 outbreak even contemplated accepting bets this week is an encouraging indication. All casinos in Michigan have remained shut down since March 22.

Late Tuesday, Detroit Mayor Mike Duggan expressed a more pessimistic outlook regarding the situation of Greektown Casino-Hotel, MGM Grand Detroit, and MotorCity Casino in Detroit.

According to The Detroit News, Duggan stated that Detroit casinos will not resume full operations until a COVID-19 vaccine is available. He implied that during the initial reopening phase, the venues may operate at reduced capacities for several months.

Duggan said regular life won’t resume for a while

Columnist Nolan Finley’s piece included comments from Duggan, along with a video of the interview.

Duggan, in the video, advised that although Michigan and Detroit are experiencing encouraging trends regarding COVID-19 cases and deaths, it is important for residents to adapt to the current lifestyle.

However, this is subject to change once a vaccine becomes available.

Duggan stated that our current situation is expected to persist in September and is also likely to continue into January. He emphasized that the coronavirus has spread extensively across southeastern Michigan and will not disappear until a vaccine is created.

Therefore, our objective is to ensure that we live each day in a manner that prevents the rapid transmission of the virus.

Duggan ‘confident’ Whitmer will make the right call

During the interview, Duggan emphasized the importance of reintegrating outdoor construction workers into their jobs and ensuring that non-COVID patients receive necessary treatments at hospitals.

Duggan stated that restaurants, movie theaters, and casinos were included in a list of upcoming priorities.

The mayor pointed out that the reopening schedules might align with Gov. Gretchen Whitmer’s latest order, which extended the emergency declaration until May 28.

Duggan expressed uncertainty, stating, “Perhaps, in a month or two, there might come a time when about a quarter of the restaurant tables could be opened.”

Duggan passed the responsibility to Whitmer, a fellow Democrat, expressing his confidence in the governor’s ability to make the appropriate decision.

On Wednesday, Republican legislators in Lansing presented a lawsuit against Whitmer, challenging her powers and thus engaging her in battles within the state capital.

Mayor: Casinos might operate at 25%30% capacity

Duggan expressed his vision of a future where casinos will function with limited capacity until a vaccine is introduced, a milestone that may still be months away.

Duggan stated that the resumption of the entertainment industry and casinos hinges on the progress of anti-viral medications and vaccines, which are beyond our control. He expressed doubt about the likelihood of a vaccine being developed locally within a year.

Duggan pondered the possibility that Detroit’s casinos would remain significantly below capacity for several months.

“I cannot say if the casinos will open at 25%-30% capacity,” he stated. “Those decisions are within the governor’s jurisdiction, and they will rely on medical advice to make such assessments when the appropriate time arrives.”

“I will not advocate for any action to be taken until it is deemed medically safe.”

According to the mayor, it could take a “few months” before casinos start attracting customers.

I anticipate that within a few months, restaurants, casinos, and possibly movie theaters will resume operations, but with only 25% to 30% capacity in order to maintain proper social distancing measures. However, this may take some time to come into effect.

Casinos a major economic engine for Detroit

In 2019, the adjusted gross receipts of Detroit casinos amounted to $1.45 billion. This generated tax revenues of over $184 million for the city and more than $117 million for the state.

Expectations were high for a prosperous 2020 as the casinos witnessed a significant 6.7% growth in revenue during January and February, surpassing the figures from the corresponding period last year.

According to The News, Detroit’s general fund was comprised of 20% revenue generated from the casinos.

Duggan stated that a significant amount of money has been allocated for any potential economic decline. However, if we reach the conclusion of the year and observe that the economy is not recovering, there will be a necessity for substantial budget reductions.

During the pandemic, all 23 tribal casinos in the state have chosen to close even though they are not under Whitmer’s authority.