The Reopening of Detroit Casinos Green-Lighted by The Governor

After months of being out of business, Detroit casinos are finally opening their doors to the players. With a new executive order, Gov. Gretchen Whitmer has given a green-light, and three of the city’s gambling establishments are allowed to welcome back guests, although at the greatly reduced capacity.

Under Whitmer’s new executive order, the capacity of Detroit casinos will be limited to 15%. The MGM, Greektown, and Motor City have been at the competitive disadvantage because many of Michigan’s tribal betting hubs – which are not under state jurisdictions – reopened with special precautions weeks ago.

When it comes to necessary procedures, establishments must conduct a daily entry screening protocol for both visitors and those working at the establishment, including temperature screening. The guests at these venues are also required to cover their faces, except while eating or drinking or identification purposes.

The Governor has also come with some other measures regarding indoor crowds. The size of the gatherings Up North is now limited to 10 and the restrictions on indoor alcohol sales match those that are already in place in central and southern Michigan.

“As we see COVID-19 cases continue to rise, Michiganders cannot afford to drop our guard,” Whitmer said in a news release. “After seeing a resurgence in cases connected to social gatherings across the state, we must further limit gatherings for the health of our community and economy. By taking these strong actions, we will be better positioned to get our children back into classrooms and avoid a potentially devastating second wave.”

Playing It Safe

When it comes to outdoor gatherings, they are limited to 100 people, though a higher limit of 250 people remains in effect in the Upper Peninsula and northern Lower Peninsula. The economic reopening of this US state has been put on pause for weeks.

Alex Calderone, managing director of the financial consulting firm based in Birmingham believes that the reopening at 15% capacity is potentially helpful for Detroit casinos but also that “Michigan may be playing it too safe.”

During this crisis, thousands of people employed in Detroit casinos have lost their jobs. With land-based gambling hubs opening in the limited capacity, it’s not very probable many of them would be returning to their job posts.

“Given that operating expenses have been slashed so drastically, it is possible they will be able to operate profitably, even at lower revenue levels driven by the 15% capacity restriction,” Calderone said.

He also added that the economy in this city as well as in Michigan will not significantly improve. After all, the state was getting substantial tax revenues from these establishments.

“Michigan has imposed the most onerous capacity limitations of any gaming jurisdiction I am aware of,” Calderone said.

Source:

“Detroit Casino to Reopen at Reduced Capacity; New Restrictions Up North”, freep.com, July 29, 2020.