MGM Resorts Experiences Regional Losses in Q4 Due to the Detroit Casino Workers’ Strike
220
MGM Resorts International’s 2023 summary was mostly encouraging, although the negative effects of the Detroit casino workers’ strike still persisted.
In Q4 of 2023, the company’s regional operations saw a 12% decline, with a significant portion of those losses being attributed to the strike.
During Q4, the MGM Grand Detroit casino workers went on strike for 47 days, costing the corporation almost $30 million in lost revenue.
All Detroit casinos suffered from the strike, but MGM Grand Detroit suffered the worst. MGM Grand is also the offline partner of BetMGM Online Casino MI.
MGM’s Regional Losses are Attributed to the Detroit Strike
January 13 saw MGM Resorts International’s investor recap call for Q4 of 2023.
Regional operations did not have the same YoY increase as the company’s total Q4 YoY growth of 22%.
Revenue for the company’s regional division fell by 12% in Q4 2023 compared to Q4 2022. It was a decrease from $991 million to $873 million.
A significant portion of it was ascribed to two factors, one of which was the Detroit casino workers’ strike. The other is the Maryland casino National Harbor Casino’s loss of upscale retail patrons.
The disruptions caused by a strike and the cancellation of some high-end play in Detroit and National Harbor, respectively, accounted for about $60 million of the YoY decline, according to Jonathan Halkyard, Chief Financial Officer of MGM Resorts International.
All three of Detroit’s casinos were hit by the casino workers’ strike. But compared to its two competitors, the MGM Grand Detroit saw a longer-lasting strike.
After 34 days, union employees at Hollywood Casino in Greektown and MotorCity Casino called off their strike on November 19. While further specifics were worked out, the MGM Grand Detroit continued for an additional 13 days, ending on December 2.
