DETROIT – Monday, May 10, 2010 – MGM Grand Detroit today affirmed its impact to the state of Michigan and to the city of Detroit on the heels of a national study commissioned by the American Gaming Association (AGA). The study indicates that commercial casinos have remained an economic asset on cities and states during tough economic times.
According to the 12th edition of the AGA’s State of States, despite a crippling recession in 2009, the U.S. commercial casino industry remained a vital asset to the nation’s economy, citing gross gaming revenue totaling more than $30 billion. The study reveals that commercial casinos returned nearly $5.6 billion in tax revenues to gaming communities across the country last year, many of which are dealing with budget deficits. Also cited in the study are the much needed jobs provided by the gaming industry, totaling 330,000 at more than $13 billion in estimated wages, salaries and benefits.
Combined, the study showed that Detroit’s three casinos employ approximately 8,000 southeast Michigan residents who earned nearly $423 million in wages and benefits in 2009. The three gaming houses also returned more than $320 million in gaming revenue taxes to the city and state in 2009. MGM Grand Detroit leads the way with more than 42 percent of the market share.
“When we expressed interest in Detroit more than 11 years ago, our commitment was that we would make a significant investment here that would provide an economic anchor to the city and to the state of Michigan,” said MGM Grand Detroit President and COO Lorenzo Creighton. “It is gratifying see studies that prove we have successfully made an impact on the lives of those who live and work here. “
MGM Grand Detroit employs 3,000 of the 8,000 total gaming workforce in the city of Detroit. At MGM Grand Detroit employees earn an average of 50,000 plus benefits. Half of those employees live within the city of Detroit, where unemployment rates have been estimated to be as high as 50 percent.
By 2009, which culminated in what appeared to be the collapse of the automotive industry, MGM Grand Detroit had pumped more than $1.2 billion into the local economy by way of spending with Detroit-based, small, minority- and women-owned businesses throughout the region. MGM Grand Detroit also donated more than $1.4 million to local charities throughout southeast Michigan over 10 years.
“What this study shows is that when allowed to operate effectively and compete equally, the gaming industry will do its part in stabilizing the communities around them,” Creighton said. “Here in Detroit, we take great pride in touching lives and touching communities.”
A full copy of the AGA State of States study can be downloaded at http://www.americangaming.org/survey/index.cfm.