Roughly 40% Of Detroit Casino Workers Are Out Of a Job After Latest Layoffs

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Leading up to Labor Day weekend, the workforce at the Detroit casino faced another setback.

Starting later this month, Greektown Casino-Hotel is set to implement another round of job cuts, resulting in the layoff of an additional 43 employees. This downsizing represents the latest instance of workforce reduction within Detroit’s gaming sector.

Since the COVID-19 pandemic forced the closure of Detroit casinos on March 16, approximately 3,000 workers have been laid off. This unfortunate situation occurred just five days after the introduction of regulated sports betting.

According to a recent report by the American Gaming Association, approximately 7,600 workers are employed by Detroit’s casinos, accounting for approximately 40% of the workforce.

Greektown, MGM Grand Detroit, and MotorCity Casino have resumed operations, albeit with limitations allowing only 15% capacity and a smoking ban on the casino floor. According to Greektown General Manager John Drake, these restrictions have further compounded the challenges faced throughout the year.

The timing of our property reopening and the severity of the new operating conditions were unpredictable, resulting in an unforeseen decline in business volumes.

Greektown already announced more than 600 layoffs

On Thursday, the Greektown announcement was communicated via a federal Worker Adjustment and Retraining Notification (WARN).

This marks the second announcement for the Penn National Gaming casino this summer.

Greektown made an announcement in June regarding the layoff of 621 employees, scheduled to begin on September 15. Eric Schippers, the Senior Vice President of Public Affairs and Government Relations at Penn National, reaffirmed that in April, a total of 26,000 employees were furloughed across the company.

MGM, MotorCity slashed over 1,000 jobs apiece

The rivals of Greektown in Detroit have also dealt their own severe blows.

According to Playinmichigan, MGM Grand Detroit revealed that they had terminated 1,100 furloughed employees last week.

MGM Resorts International implemented a nationwide restructuring which resulted in the loss of jobs for 18,000 employees.

In July, due to the pandemic, MotorCity had to furlough 2,554 employees. However, following the casino’s recent announcement regarding its reopening date, general manager Bruce Dall stated that approximately half of their workforce would be rehired.

State, city impacted by shutdowns too

Not only are the displaced employees being affected, but the shutdown is also having an impact on the tax revenues for local governments.

As of July, Detroit’s casino revenue had experienced a 65% decline year to date compared to 2019.

The result was a decrease of $45 million in state tax revenue and a decline of $66.1 million for the city of Detroit.

On Tuesday, there were no numbers available for August yet.

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