GAMING INDUSTRY IN REVIEW
UAW Members on a Winning Streak
Since 2000, approximately 3,000 UAW members working at three Detroit casinos have ratified first contracts. The workers won significant gains in working conditions, wages and benefits. This marked the expansion of the UAW into the gaming industry.
Gaming Industry: Overview
Gaming in the United States is a growing industry with increasing revenues and profits from hotels, entertainment, food and gaming. The industry is divided into two sectors: commercial gaming and Native American or tribal gaming. Commercial gaming exists in 11 states and includes casinos and casino/hotels in places like Las Vegas and Atlantic City and riverboat and dockside gaming in Indiana, Mississippi and other states. Tribal gaming can be found in 28 states and includes casinos and other gaming on Native American reservations and tribal lands. In 2001, commercial and tribal gaming generated an estimated $38.3 billion in total revenues. Of this total, commercial gaming generated 67 percent ($25.6 billion) and tribal gaming generated 33 percent (an estimated $12.7 billion).
Although the gaming industry continues to be dominated by the casino/hotels in Las Vegas and Atlantic City, riverboat gambling in the Chicago area and Native American gaming in Connecticut are large gaming markets. The Detroit, Michigan/Windsor, Ontario market is a recent addition to a list of the top five gaming markets.
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Commercial Gaming
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In 1991, gross gaming revenues in the United States were an estimated $10.5 billion. By 1998, revenues increased 195 percent to an estimated $31 billion. In 2001, revenues increased further to an estimated $38.3 billion. Much of the growth was due to the introduction of new gaming venues. In the 1990s, riverboat or dockside gaming was legalized in six states and gaming at racetracks was legalized in several states. In addition, Las Vegas and Tribal gaming continued to expand.
Las Vegas and Atlantic City are the largest markets in the commercial gaming industry. Las Vegas, especially the Strip, spent the 1990s transforming itself into a family vacation destination for visitors throughout the United States and overseas. In contrast, Atlantic City is still in the early stages of becoming a family vacation destination and attraction for national and international visitors. Most Atlantic City visitors drive or take buses to the boardwalk casinos for the day. Casino owners are in the process of building more hotel rooms and non-casino attractions to increase overnight visits and the city is planning infrastructure improvements.
The commercial gaming industry is highly regulated by the states. State gaming control boards enforce the provisions of gaming control acts. The gaming control board licenses and investigates all individuals, including all casino employees, associated with gaming, regulates the internal financial and operational affairs of gaming establishments, combats cheating and fraudulent practices and regulates the collection of state and local revenues through taxation and licensing fees.
In several key markets, the commercial gaming industry is highly unionized. The Hotel Employees and Restaurant Employees Union (HERE) represents approximately 80,000 workers in the gaming industry in the United States. The union represents 45,000 housekeepers, food and beverage employees, cashiers, changepeople and porters in Las Vegas and 14,000 in Atlantic City. HERE also represents casino workers in Indiana, Missouri, California and Washington. The Detroit Casino Council (UAW, HERE, IUOE, Teamsters and Carpenters) represents approximately 6,100 workers at Detroit’s three casinos. The Canadian Auto Workers represent 4,400 workers at Casino Windsor in Windsor, Ontario, Canada.
Casino operators and managers have traditionally resisted the unionization of dealers in an attempt to retain absolute control over employees who handle money at table games. Therefore, the UAW’s representation of dealers is part of a new chapter in the industry’s labor relations. The Transport Workers Union of America (TWU) also represents dealers at one casino in Las Vegas.
The majority of workers in the gaming industry, who have won union representation, have won it via card check and neutrality agreements instead of traditional NLRB representation elections. Unions have used a variety of strategies to make card check the norm in the industry.
Major Casino Owners
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Native American Gaming
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Quick Facts: · A small number of tribes receive the majority of tribal gaming revenues · California, Connecticut and Wisconsin are the top three states in tribal gaming revenues · Unions have made gains in a traditionally non-union sector of the industry |
According to the National Indian Gaming Commission, about 200 of the 562 federally recognized Native American tribes operate 296 gaming operations in 28 states. These gaming operations include casino hotels, casinos and bingo halls. The Commission estimates that Native American gaming generated $12.7 billion in revenues in 2001, with a small number of tribal gaming operations generating the majority of revenues. The Commission estimates that $10 billion (79 percent) of 2001 revenues went to 40 tribes. Twenty tribes received 55 percent of the gaming revenues, primarily due to their close proximity to metropolitan areas.
Tribal gaming in California generated an estimated $3 billion in revenues and gaming in Connecticut generated approximately $1.76 billion in revenues in 2001, ranking the states numbers one and two in tribal gaming revenues. Wisconsin was third with approximately $885 million in tribal gaming revenues.
Tribal gaming has traditionally been non-union. Tribal gaming facilities are on sovereign tribal land and not subject to the provisions of the National Labor Relations Act, OSHA or other federal legislation. However, casinos on tribal lands are subject to the Indian Gaming Regulatory Act and compacts with individual states governing tribal gaming operations. To bypass the lack of federally guaranteed representation rights, HERE has several agreements with states to require collective bargaining rights for workers at tribal gaming facilities. HERE has agreements covering existing and future tribal gaming facilities in California, Wisconsin, Connecticut and New York.
The Gaming Industry in Detroit
The Detroit market includes the three casinos in Detroit and a casino in Windsor, Ontario. The Motor City Casino is a joint venture of the Mandalay Bay Resort Group (53.5 percent) and the Atwater Casino Group (46.5 percent). The MGM Grand Casino Detroit is owned by MGM Mirage and the Greektown Casino is a joint venture of the Sault Ste. Marie Tribe of Chippewa Indians (90 percent) and a group of Detroit-based investors (10 percent.) Casino Windsor is owned by the Province of Ontario, Canada and operated by a joint-venture company owned by Park Place Entertainment (50 percent) and Hilton Hotels (50 percent). Michigan also has several Native American casinos in the central and northern parts of the state.
The increased border security between the United States and Canada following September 11 caused long delays at border crossings. Since a large majority (80 percent) of the casino’s customers are from the United States, Casino Windsor’s revenues declined dramatically. Revenues at the casino fell 50 percent and the casino laid off 600 workers. Revenues at Casino Windsor still have not reached their pre-September 2001 levels. Windsor’s loss has been Detroit’s gain as more gaming customers are staying in Detroit, where revenues have increased.
The 6,100 workers at the city’s three casinos are represented by the Detroit Casino Council. The Council is a coalition of five unions. The UAW represents dealers, slot technicians, cage cashiers and money handlers. The Teamsters represent delivery, warehouse, clerks and landscapers. The Operating Engineers represent engineering staff. HERE represents food and beverage, slot change and porter staff. The Carpenters Union represents the carpenters at the Greektown casino.
