It has been two decades since cards started flying and slots started spinning in Detroit – a city that has had its share of challenges during that time.
But city leaders and government officials say they appreciate the relationships they have with the gaming industry, and talked about the past, present and future during a roundtable discussion at the MGM Grand Detroit Wednesday morning.
Brenda Jones, president of the Detroit city council, said revenues and employment from the city’s three commercial casinos were vital as the city faced financial problems that climaxed with a bankruptcy filing in 2013.
“The city would have been in even bigger trouble; not just with the revenue but with the jobs generated throughout the casino,” she said. “Of course when you have jobs, you have the income taxes from the employees; so truly the casinos have helped tremendously before, during and after the bankruptcy.”
U.S. Rep. Brenda Lawrence, D-Detroit, also offered similar observations.
“The greatest impact can be realized in jobs offered in a wide range of careers providing a path to the middle class for the residents of Detroit, as well as their mission-based philanthropic efforts which infuse additional resources throughout the city and beyond,” she said.
American Gaming Association President Geoff Freeman noted that stories such as Detroit are important to tell.
“When you thought of the industry in the past you thought Las Vegas, maybe Atlantic City,” he said. “Detroit has one heck of a story to tell. When you look back 20 years, the phrase that sums it up best is ‘Promises made, promises kept.’”
Steve Zanella, president and COO, MGM Grand Detroit, noted that the casino industry provides 6,000 jobs in the area, and casino taxes comprise 16 percent of Detroit’s budget.
“We’re thrilled about what this industry has been able to do for Detroit,” he said.
Bruce Dall, CFO of MotorCity Casino-Hotel, noted that his casino has done more than $2 billion in business with vendors, 57 percent of whom are either Detroit residents or minority-based.
The city collected $14.8 million in gambling revenues in April, 8 percent more than last year. Casinos pay 8.1 percent to the state and 10.9 percent to the city on net win. Last year’s payments to the city totaled $174.8 million.
But the panel, which also included Jason Gregorec, general manager and CEO of Greektown Casino-Hotel, also discussed the future.
Freeman noted, “For this industry to thrive over the next 20 years, it has to evolve and make the products better and innovate.” He noted that Michigan has 23 casinos (most of which are Native American), as well as competition in Canada and Ohio.
“We need to understand that competitive landscape,” he said.
Photo Credit: Olga GamburgFreeman also said enduring a bankruptcy in some ways puts Detroit ahead, because tough decisions had to be made.
“Detroit has looked for partners and found it with this industry, not just people willing to employ people but train people, something the hospitality industry does remarkably well,” he said. “Look at Atlantic City. When you rest on your laurels and don’t reinvest in the community around the casinos, you’ve got a problem. Michigan and every other region should pay close attention to that.”
Freeman also continued his campaign for legalized sports betting and skill-based games.
“What’s worked over the first 20 years may not work the next 20 years,” he said. “It’s different customers, products and interests. We’ve got to figure out how to take it to the next generation.”
The AGA notes that in November 1996, Michigan voters approved Proposal E, effectively authorizing three licensed casinos to be built in Detroit. Proposal E was later substantially improved and strengthened, then signed into law as the Michigan Gaming Control & Revenue Act.
The AGA has hosted similar events in Ohio, Iowa, Colorado, Nevada and Pennsylvania as part of its Get to Know Gaming campaign. For more info, go to GetToKnowGaming.org.
