Michigan Casinos Seek A Bailout from The Government

Michigan Casinos Seek A Bailout from The Government

As the coronavirus pandemic is taking its toll on the gambling industry, Michigan casinos are asking the government for a bailout package.

Industry hit hard

The US is in its second week of official shutdown because of which all non-essential businesses are being shuttered. Casinos have been hit severely because of this as social distancing doesn’t allow gatherings where people may transmit the highly infectious virus to each other. Most of the people are being urged to stay home and come out only when it is absolutely necessary. The total shutdown has left many casino workers jobless.

Michigan Casinos Seek A Bailout from The Government

Casinos have also been left to count their losses, which will likely run into millions of dollars. Michigan casinos have already invested in sports betting and were getting ready to launch their offerings. However, now major sporting events are canceled and their staffers are out of work which is causing a double whammy of troubles. In times of extreme financial crisis, the industry is banding together and requesting the government for a bailout.

Michigan casinos need help

The state has 26 casinos, all of which have been shuttered indefinitely. It is unclear how long the shutdown will continue and every passing day is leading to more losses. The Center for Disease Control and Prevention suggests a ban on large gatherings for at least eight weeks which means that the next two months will be harsh for the industry.

The state’s casinos could lose $1 billion collectively during the suggested shutdown period. MotorCity, MGM Grand, and Greektown are taking the lead in asking the state government for help. These three commercial casinos are receiving some support from the American Gaming Association, which has urged the federal government to bail out the entire industry.

The rest 23 casinos are owned by tribes and are not regulated by the states. However, in times of crisis, they are also seeking some support from the state government.

Over 1,000 casinos have been shut down throughout the country, causing a loss of 600,000 jobs. In Michigan alone, the job loss totals 19,000. MGM Grand, MotorCity, and Greektown have decided to pay all their employees until the end of the month but have not promised anything more. If they do not receive a bailout package soon, they may not be able to pay thousands of their workers. The package must be delivered within the next week to help the industry.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.