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LANSING – Gov. Gretchen Whitmer gave the go-ahead Wednesday for Detroit's three casinos to open at greatly reduced capacity Aug. 5, after shutdowns that began in March because of the coronavirus pandemic, under a new executive order.
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But Whitmer is also dialing back economic reopening in northern Michigan, reducing the size of groups allowed to gather and banning indoor alcohol sales in nightclubs and other establishments that mostly serve alcohol, with little food. Both changes are effective Friday.
Capacity at Detroit casinos will be limited to 15% under Whitmer's new executive order. The MGM, Greektown and Motor City casinos have been at a competitive disadvantage because many of Michigan's tribal casinos — which are not under state jurisdicition — reopened with special precautions weeks ago.
Casinos must conduct a daily entry screening protocol for customers and employees, including temperature screening. Casinos also must require patrons to wear a face covering, except while eating or drinking or for identification purposes, the release said.
Both the size of indoor gatherings Up North, now limited to 10, down from 50, and the restrictions on indoor alcohol sales match restrictions 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.”
Outdoor gatherings are limited to 100 people, though a higher limit of 250 people outdoors will remain in effect in the Upper Peninsula and northern Lower Peninsula, Whitmer said.
Michigan's economic reopening has been on pause for weeks, amid rising coronavirus case numbers.
The Upper Peninsula and northern Lower Peninsula remain in Phase 5 of Whitmer's six-phase reopening plan, while the rest of the state remains in Phase 4. Gyms, movie theaters and various entertainment venues are among the businesses that can be open in Phase 5, but not in Phase 4.
Alex Calderone, managing director of the financial consulting firm Calderone Advisory Group, based in Birmingham, said reopening at 15% capacity is potentially helpful for Detroit's casinos, but 'Michigan may be playing it too safe.'
Detroit casinos have laid off thousands of workers during the pandemic, and it is unlikely many of them will return to work with the casinos operating at greatly reduced capacity.
'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.
Still, the restrictions will mean continued economic pain for both the city of Detroit and state of Michigan, which reap significant tax revenues from the casinos when they are operating near capacity, he said.
'Michigan has imposed the most onerous capacity limitations of any gaming jurisdiction I am aware of,' Calderone said.
More: 5 wedding guests got coronavirus after Southgate hall defied Whitmer order Perfect pair poker.
More: Michigan reports 669 new coronavirus cases, 16 deaths Tuesday
Michigan's seven-day average of daily new cases is now in the high 600s, after bottoming out June 15 at 152 and rising to 275 late that month. But state officials said Tuesday case numbers may have reached a plateau, while daily death counts are far below those of March and April and hospitalization rates remain well under control.
Whitmer had hoped to be announce that south and central Michigan could join northern Michigan in Phase 5 of her six-phase reopening plan ahead of the July 4 holiday, but that was postponed because of rising cases.
Michigan's barbershops, hair and nail salons, tattoo parlors and other personal service shops reopened June 15 in southern and central Michigan, after reopening June 10 in the Upper Peninsula and northern Lower Peninsula.
Also open Up North, as of June 10: movie theaters, gyms, bowling alleys and outdoor sporting venues.
For economic reopening purposes, Up North is the Upper Peninsula, plus Antrim, Alpena, Benzie, Charlevoix, Cheboygan, Crawford, Emmet, Grand Traverse, Leelanau, Manistee, Missaukee, Montmorency, Otsego, Presque Isle, Roscommon and Wexford counties in the northern Lower Peninsula.
On June 1, Whitmer said all Michigan bars and restaurants could reopen at 50% capacity June 8. She had earlier loosened restrictions on bars and restaurants in northern Michigan. But on July 1, she halted indoor bar service at nightclubs and other establishments that mostly serve alcohol, except for Up North.
Contact Paul Egan: 517-372-8660 or [email protected]. Follow him on Twitter @paulegan4. Read more on Michigan politics and sign up for our elections newsletter.
This article originally appeared on Detroit Free Press: Detroit casinos to reopen at reduced capacity; new restrictions Up North
When Gov. Gretchen Whitmer announced last week that Detroit’s three casinos could reopen this week, there were a few catches.
Front and center is a 15% capacity restriction, the lowest in the country.
Still, reopenings of Greektown Casino-Hotel, MGM Grand Detroit and MotorCity Casino will drive revenue for a city in need.
“Casinos have been operating safely across most of the country and in tribal areas in Michigan and should be able to do so in the Detroit region as well,” Whitmer wrote in her order.
How Many Casinos In Detroit
The Detroit casinos closed March 16 because of the COVID-19 pandemic. Meanwhile, all but one of the state’s tribal casinos have reopened. Whitmer is allowing the casinos to reopen at 10 a.m. on Wednesday.
MGM Grand announced it will open Aug. 7 instead. Greektown posted on Twitter Top casino bonus codes com. that it expects to open Wednesday. MotorCity will open Wednesday as well.
Michigan casinos laying off employees during coronavirus
On Thursday, Jocelyn Kelly of MGM told PlayMichigan that restriction would allow about 1,800 patrons on the casino floor. Representatives from MotorCity and Greektown did not respond to inquiries about the capacity restrictions.
However, in a letter announcing extended layoffs for 2,554 employees, a MotorCity official detailed the hardships of the restrictions, which were originally detailed by the Michigan Gaming Control Board last month.
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David Turner, vice president of human resources for the casino and hotel, signed a Worker Adjustment and Retraining Notification Act notice that bemoaned the provisions and delays in reopening.
“In recognition of the limitations under those guidelines, we concluded that our operational levels would be seriously reduced,” the letter states. “Thus, we reached the conclusion late last month that only about half of our Associates would be needed when we re-opened, and we had no way to predict when we would be permitted to increase operations enough to make it feasible to bring everyone else back to work.”
The letter detailed how MotorCity Casino would not be continuing benefits for the laid-off workers after Friday as July closed.
Other states have higher capacity limits
States across the country are also imposing capacity limits on casinos, though none as strict as Michigan.
In Pennsylvania and Illinois, casinos are open at 50% capacity. In New Jersey, it’s 25%.
The capacity limit started at 25% in Louisiana, but was loosened to 50% for the next phase.
The Supreme Court ruled last week that Nevada imposing a 50-parishioner limit at churches and allowing 50% capacity at casinos was allowed.
Jacob Miklojcik, a Lansing gaming consultant, said few casinos operate at capacity anyway.
“It’s a part of the lifeblood of the city’s economy,” Miklojcik added. “Not only the gaming tax but business services tax, property taxes, and all kinds of other taxes that the casinos will continue to pay. It’s a dangerous game.”
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How much will 15% capacity hurt casino business?
The Detroit casinos need as many players as possible inside to maximize revenue.
It’s tough to pinpoint how much the capacity restrictions will impact business.
How Many Casinos Are In Detroit
There is surely a pent-up demand for casino gambling in the region. But many players, especially older ones, could stay away from such public places while the pandemic still threatens.
The Detroit Free Press spoke to two analysts with mixed opinions about the restrictions.
Alex Calderone of Calderone Advisory Group of Birmingham warns the pain will continue for casino and tax revenue.
“Unless everyone who comes in the door plays and loses five or six more times than they normally would, it’s nearly impossible to generate similar revenues.”
Casinos In Detroit Area
Casinos reopening as state still fights COVID-19
There are about 600 new coronavirus cases per day in Michigan after a drop in mid-June.
Daily death counts are far below those of March and April when the virus hit the Detroit area hard. Whitmer’s order Wednesday also restricted indoor gatherings to 10 people and closed indoor bars in northern Michigan.
“As we see COVID-19 cases continue to rise, Michiganders can not afford to drop our guard,” Whitmer said, in a statement. “We must take every step possible to save lives, protect the brave men and women on the front lines, and avoid overwhelming our healthcare system while we continue to combat COVID-19.
“After seeing a resurgence in cases connected to social gathering 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.”