Detroit
Casino News - 2007
December 13, 2007
At the meeting of the
Michigan Gaming Control Board (Board) on Tuesday, December 11, the
Board considered the tax base reduction certification request of
casino licensee MGM Grand Detroit, LLC (MGM Grand Detroit). Pursuant
to Public Act 306 of 2004, the wagering tax rate applicable to the
Detroit casinos was increased from 18% to 24%. However, PA 306 also
provided for a rollback of the wagering tax to 19% once a casino
licensee was “fully operational” for a period of 30 consecutive
days. After consideration of the issue, the Board entered an order
certifying MGM as “fully operational,” and ordering that MGM Grand
Detroit was entitled to a tax roll-back retroactive to October 3,
2007.
December 13, 2007
The Michigan Gaming
Control Board releases November 2007 Total Adjusted Revenue for the
three Detroit casinos. MGM Grand Detroit, Motor City Casino, and
Greektown Casinos reported total adjusted revenues of
$46,783,708.09, $38,306,560.95, and $28,115,302.02 respectively. The
three Detroit casinos’ total adjusted gross receipts for November
2007 were $113,205,571.10.
November 29,
2007
After an approximate
one month delay in order to further train employees and take
delivery of hotel furnishings, the MotorCity Casino Hotel opened to
guests at 4:00 p.m. on November 28, 2007. The opening of the hotel
is the capstone of MotorCity Casino’s ongoing $300-million expansion
of its temporary casino facilities. The 17-story hotel holds 400
guest rooms which have such amenities as: 300 thread count sheets,
37-inch flat-screen plasma TVs that rotate180 degrees, fresh-cut
bouquets daily, and iPod docking station, access to a pillow
library, programmable room temperatures and automated room service
and maid calls. Greg Solomon, chief executive officer of MotorCity,
intends to carve out a reputation as “technology leader” in the
Detroit market.
November 21,
2007
The Detroit/Windsor
casino market is going through its its largest transformation since
the opening of the permanent Casino Windsor in 1998 and the opening
of the three Detroit temporary casinos in 1999-2000. At the
conclusion of the current phase of development, Detroit will house
three permanent casinos that will collectively include over $1.2
billion in capital investment, 1,200 hotel rooms, 300,000 square
feet in gaming space along with numerous restaurant and meeting
locations. Meanwhile, across the Detroit River, Casino Windsor is
set to complete a $400 million expansion to its initial $500 million
casino by adding 400 hotel rooms and 100,000 square feet of
convention space during spring, 2008.
November 21,
2007
The Michigan Gaming
Control Board releases October 2007 Total Adjusted Revenue for the
three Detroit casinos. MGM Grand Detroit, Motor City Casino, and
Greektown Casinos reported total adjusted revenues of
$54,888,849.43, $37,709,923.79, and $25,633,602.69 respectively. The
three Detroit casinos’ total adjusted gross receipts for October
2007 were $118,232,375.91.
November 1,
2007
On Monday, October
29, workers at the MGM Grand Detroit Casino ratified a new four-year
labor agreement, which, according to a press release by the United
Auto Workers, includes a 4% pay increase in each year of the
contract, enhanced 401(k) contributions, and a $1,000 worker bonus.
The MGM Grand Detroit Casino deal passed with 53% of approximately
2,900 covered workers voting in favor of the agreement.
October 25,
2007
At the Monday,
October 22, 2007 public meeting of the Michigan Gaming Control Board
(“MGCB or Board”), the Board considered the application for
suitability filed by Mr. Ted Gatzaros, a Detroit businessman who
owns the Antheneum Hotel and several area restaurants. Mr. Gatzaros
was one of the driving forces behind bringing commercial casino
gaming to the City of Detroit in the 1990s.
After an extensive
investigation into the background and business history of Mr.
Gatzaros, the MGCB staff issued a report to the Board in which it
made no recommendation as to the suitability of Mr. Gatzaros,
instead leaving the issue to the discretion of the four member
Board. The Board voted unanimously to find Mr. Gatzaros eligible and
suitable for licensure.
October 25,
2007
The
Michigan Gaming Control Board releases September 2007 Total Adjusted
Revenue for the three Detroit casinos. MGM Grand Detroit, Motor City
Casino, and Greektown Casinos reported total adjusted revenues of
$35,279,291.62, $39,884,824.57, and $26,308,063.80 respectively. The
three Detroit casinos’ total adjusted gross receipts for September
2007 were $101,472,179.99.
October 17,
2007
After reaching a tentative labor agreement with the Detroit Casino
Counsel, which represents approximately 6,100 employees at the three
Detroit casinos, MotorCity Casino reopened for business shortly
after 5:00 p.m. The casino had been closed for almost seven hours as
the sides negotiated past the 11:59 a.m. extended deadline. Though
exact terms of the tentative agreement have not been released, The
Detroit Free Press has reported that the main issues centered on
employee wages, health insurance premiums and 401(k) retirement plan
contributions. If the terms of the tentative deal are approved by
MotorCity Casino employees, this deal will likely be used as the
template for subsequent labor contracts at MGM Grand Detroit Casino
and Greektown Casino.
October 17,
2007
According to published reports on the websites of The Detroit News
and The Detroit Free Press, MotorCity Casino closed its doors at
approximately noon on October 17, after the expiration of the
extended union contract negotiation deadline of 11:59 a.m. Though
workers have said that there has been no official strike action
taken, MotorCity decided to close the casino given the strike
deadline that the union had set. Though MotorCity Casino is
currently closed, contract negotiations are ongoing.
October 11,
2007
The
employees that work at the three Detroit casinos are represented by
the Detroit Casino Council, which is made up of a coalition of five
separate unions, representing the 6,100 plus employees at the MGM
Grand Detroit Casino, MotorCity Casino, and Greektown Casino. The
current labor agreements with the Detroit Casino Council expire on
October 16, 2007. In connection with the expiration of the
agreements, on October 11, 2007 the Detroit Casino Council held a
vote of its members to authorize a strike against the three Detroit
casinos, should the casinos and the labor organizations fail to
reach and agreement by the October 16.
The
Detroit Casino Council is made of the following union organizations:
1.
UAW, which represent dealers, slot technicians, cage cashiers and
money handlers;
2.
Teamsters, which represent delivery, warehouse, clerks, and
landscapers;
3.
Operating Engineers, which represent engineering staff;
4.
HERE, which represent food and beverage, slot change and porter
staff; and
5. Carpenters Union, which represent the carpenters at the Greektown
Casino.
October 2,
2007
At approximately 4:00
a.m. Monday, October 1, 2007, the Michigan Legislature and Governor
Jennifer Granholm reached a state budget agreement for Fiscal Year
(FY) 2008. The terms of the deal will address most of the
anticipated FY 2008 budget deficit of $1.75 billion, and end a
partial state government shutdown, which lasted a little more than
four hours.
October 2,
2007
At 12:01 a.m. on
Wednesday, October 3, 2007 the MGM Grand Detroit Casino is scheduled
to open its $800 million hotel and entertainment destination in
Detroit, Michigan to the Midwest gaming market. The opening of the
permanent casino comes eight years after MGM Grand Detroit opened
its temporary casino, which closed its doors in advance of the grand
opening of the permanent facility. MGM Grand Detroit will be one of
three permanent casinos to operate in the City of Detroit once the
Motor City Casino and Greektown Casino permanent complexes open
later this year, and next year, respectively.
September 27,
2007
The Michigan Gaming
Control Board releases August 2007 Total Adjusted Revenue for the
three Detroit casinos. MGM Grand Detroit, Motor City Casino, and
Greektown Casinos reported total adjusted revenues of
$42,750,887.02, $41,091,884.90, and $27,795,698.55 respectively. The
three Detroit casinos’ total adjusted gross receipts for August 2007
were $111,638,470.47.
September 27,
2007
The Michigan
Legislature and Michigan Governor Jennifer Granholm have yet to come
to an agreement on the state’s 2008 Fiscal Budget. Consequently, the
state of Michigan’s government operations will close if a budget is
not approved by the legislature for the new fiscal year, which
begins on October 1, 2007.
As a result of the
potential government shut down, the Michigan Gaming Control Board
(“Board”) held a special meeting September 27, 2007, and adopted and
Order entitled “Non-Disciplinary Order Temporarily and Summarily
Suspending Respondents’ Casino Licenses and Directing that all
Gaming Cease Immediately in the Event the Gaming Board is Prevented
from Discharging its Regulatory Duties on or after October 1, 2007.”
September 15,
2007
Representative Steve
Tobocman (D-Detroit) introduced House Bill (“H.B.”) 5212 in the
Michigan House of Representatives. H.B. 5212 seeks to reduce the
pool of Detroit casino employees that are required to undergo
background checks before being allowed to work in one of the three
Detroit casinos. The proposed legislation seeks to amend the
Michigan Gaming Control and Revenue Act to only require criminal
background checks of “Gaming Employees”. MCL 432.208b currently
requires all prospective employees to undergo these criminal
background checks.
August 14,
2007
The Michigan Gaming Control Board ("MGCB") released the July 2007,
total adjusted revenue figures for the three Detroit casinos. MGM
Grand Detroit Casino, MotorCity Casino and Greektown Casinos
reported total adjusted revenues of $41 ,334,381.05, $42,676,452.96,
and $29,281,394.59.The three Detroit casinos' Total Adjusted Gross
Receipts for July were $113,292,228.60.
August 6,
2007
The American Gaming Association (AGA) and the National Center for
Responsible Gaming (NCRG) celebrated the 10th anniversary of
Responsible Gaming Education Week (RGEW), a program aimed at
enhancing the gaming industry's culture by encouraging employees and
AGA members to think about responsible gaming education throughout
the entire year.
July 24,
2007
The Michigan House Commerce Committee voted 12-4 to send a bill
banning public smoking in Michigan workplaces to the full House.
This vote marks the furthest any smoking ban legislation has moved
in the Michigan Legislature. The proposed ban would include almost
all Michigan workplaces including bars, restaurants and commercial
casinos. An amendment exempting casinos, facilities with liquor
licenses and private clubs failed, but the bill does include
exemptions for cigar bars and smoke shops. Tribal casinos are not
expected to be affected by the ban because tribes are considered
sovereign nations.
July 19,
2007
The major renovations to Casino Windsor's existing facility were
complete in June with the opening of Neros gourmet steakhouse. The
additional expansion plans are nearing completion with the entire
project expected to be finished in spring 2008. The current hotel
tower is in the process of being renovated floor by floor. According
to Casino Windsor Communications and Community Affairs Director
Holly Ward, the decor will feature a "chick, modern hotel look."
Rooms will include new bedding, linens and furniture, as well as new
widescreen televisions.
July 16,
2007
The Michigan Gaming
Control Board (MGCB) released June 2007, total adjusted revenue
figures for the three Detroit casinos. MGM Grand Detroit Casino,
MotorCity Casino and Greektown Casino reported adjusted revenues of
$38,562,158.58, $42,333,206.56, and $28,490,060.73. The three
Detroit casinos' Total Adjusted Gross Reciepts for June 2007 were
$109,385,425.87.
July 13,
2007
Earlier this
year, the Detroit Metro Convention and Visitors Bureau (DMCVB)
unveiled a new "brand identity" for the region representing the
area's history and attractions: "D. Cars, Culture, Gaming, Music,
Sports." According to a news release issued by the DMCVB, the report
conducted by CIC Research, Inc., found that "metro Detroit's tourism
industry began to rebound in 2006 with 15.9 million visitors and
$4.8 billion in visitor spending. This represents a 2.6 percent
increase in volume from 2004 (the last year the study was conducted)
and an 8.6 percent increase in visitor spending."
June 12,
2007
The Michigan Gaming
Control Board released May 2007 Total Adjusted Revenue for the
three Detroit casinos. MGM Grand Detroit, MotorCity Casino and
Greektown Casinos reported total adjusted revenues of $41,417,910.37, $36,787,442.36 and $27,394,026.36 respectively. The
three Detroit casinos' Total Adjusted Gross Receipts for May
2007 were $105,599,379.09.
June 7,
2007
MotorCity opened
its permanent casino gaming complex. The overall theme of
MotorCity's new complex is a tribute to Michigan's automotive
industry. The decor throughout the gaming space includes fixtures
resembling steering wheels and hubcaps, and various photos and
paintings displaying the automotive theme. The new gaming area is
one-third larger than the temporary casino floor, which allows for
up to 600 additional slot machines. In conjunction with the debut of
the gaming floor, MotorCity will also be opening the Signature
Lounge dining area for premier guests. The Signature Lounge marks
the first of many new restaurants that will be included in the final
project.
June 6,
2007
The MGM Grand Detroit Casino began accepting
room reservations for its new 400-room hotel, scheduled to open in
October. MGM is the first of the three Detroit casinos to accept
hotel reservations.
May 10, 2007
The Michigan Senate
voted (36-0) to approve the appointment of Richard Kalm as the new
executive director of the Michigan Gaming Control Board. The full
Senate roll call vote occurred following a similar unanimous vote
(7-0) of the Senate Economic Development and Regulatory Reform
Committee on May 9.
May 9,
2007
The Michigan Gaming
Control Board released April 2007 Total Adjusted Revenue for the
three Detroit casinos. MGM Grand Detroit, MotorCity Casino and
Greektown Casinos reported total adjusted revenues of $41,040,958.48 ,
$39,345,925.30 and $30,060,692.80 respectively. The
three Detroit casinos' Total Adjusted Gross Receipts for April
2007 were $110,447,576.58.
April 10, 2007
The Michigan Gaming
Control Board released March 2007 Total Adjusted Revenue for the
three Detroit casinos. MGM Grand Detroit, MotorCity Casino and
Greektown Casinos reported total adjusted revenues of
$47,402,120.22 , $42,894,972.21 and $33,427,503.33 respectively. The
three Detroit casinos' Total Adjusted Gross Receipts for March
2007 were $123,724,595.76.
April 10,
2007
The Michigan
Gaming Control Board (MGCB) voted unanimously to approve the funding
of Greektown Casino’s Permanent Casino. After a brief presentation
by Mr. John Page, deputy director of enforcement and interim deputy
director of licensing for the MGCB, the Board adopted the order
approving an amendment to Greektown’s credit facility.
March 29, 2007
Gov. Jennifer
Granholm announced the appointment of Richard S. Kalm as executive
director of the Michigan Gaming Control Board (MGCB). Kalm is
appointed to a six-year term, subject to the Michigan Senate
approval as outlined in the Michigan Gaming Control and Revenue Act.
See
Vol. 13, Issue 3
of The Michigan Gaming Newsletter for the full article.
March 14, 2007
The Michigan Gaming
Control Board released February 2007 Total Adjusted Revenue for the
three Detroit casinos. MGM Grand Detroit, MotorCity Casino and
Greektown Casinos reported total adjusted revenues of
$36,771,280.82, $39,208,228.16 and $28,998,669.02 respectively. The
three Detroit casinos' Total Adjusted Gross Receipts for February
2007 were $104,978,178.00.
March 7, 2007
MGM Grand Detroit
announced it opened a Web site where individuals can apply for jobs
at its new hotel and permanent casino which is scheduled to open
later this year. By visiting
http://www.mgm1job.com, individuals
will be able to search jobs, submit their application, and schedule
a job interview through the online process. MGM Grand Detroit
indicated in a press release that it intends to hire over 1,000 new
people.
February
2007
The Michigan Gaming
Control Board released January 2007 Total Adjusted Revenue for the
three Detroit casinos. MGM Grand Detroit, MotorCity Casino and
Greektown Casinos reported total adjusted revenues of
$40,503,320.38, $40,452,401.96 and $28,439,733.74 respectively. The
three Detroit casinos' Total Adjusted Gross Receipts for January
2007 were$109,395,456.08 .
February 2007
The Detroit
commercial casinos experienced a 6.1 percent increase in total
gaming revenue in calendar year 2006 over 2005 figures. The three
operators took in $1.303 billion for the year, up from $1.229
billion in 2005. The three Detroit casinos' 2006 Total Adjusted
Gross Receipts totaled $1,303,302,823.27. The total 2006 wagering
tax paid to the state of Michigan was $158 million, and the city of
Detroit was paid $155 million.
