PENN - Double Whammy: How Detroit Casino Shutdown Could Hurt Gaming Stocks State Of Michigan | Benzinga
With a United Auto Workers strike already throwing the Big Three Detroit automakers into disarray, Detroit is facing a second potential strike from another sector that represents a major revenue stream for the Motor City.
Detroit Casino Workers Authorize Strike: Workers at the three Detroit casinos could strike if a new contract is not reached by an Oct. 16 deadline. Workers voted 99% in favor of a strike authorization on Friday, showing strong support for the potential move.
The move would see union workers at the MGM Grand Detroit, owned by MGM Resorts International (NYSE: MGM); the Hollywood Casino at Greektown, owned by PENN Entertainment (NASDAQ: PENN); and the MotorCity Casino go on strike.
Similar to the auto strike in whicih UAW workers are seeking a pay raise and better retirement benefits, Detroit casino workers are looking for a similar deal.
The workers are pushing for job protection related to a rise in technology, which could put online sports betting and iGaming at the forefront of a strike.
A report from PlayMichigan said that new contract negotiations have been ongoing since September, with five unions involved with talks with the Detroit Casino Council. The unions include UNITE HERE Local 24, UAW, Teamsters Local 1038, Operating Engineers Local 324 and the Michigan Regional Council of Carpenters.
Workers that could be involved in the ...