MGM Grand Detroit casino prepares to reopen after COVID-19 shutdown

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Detroit's three casinos will start reopening Wednesday under new governor-mandated capacity restrictions, 4½ months after closing for the coronavirus pandemic.

MotorCity Casino Hotel is to open at 10 a.m. Wednesday, followed by Greektown Casino-Hotel at 2 p.m.

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MGM Grand Detroit will open for invite-only VIP customers Wednesday and Thursday, and at 10 a.m. Friday for the general public.

Casino customers can expect to see a lot of changes and new rules since their last pre-pandemic visit.

© Eric Seals, Detroit Free Press The MGM Grand Detroit will have limited seating signs for slot machines and card tables when the casino opens on August 7, 2020.

The biggest difference: All three properties must now limit operations to 15% capacity, a regulation that gambling industry experts say is among the strictest COVID-19 rules in the country. By comparison, Hollywood Casino Toledo can operate at 50% capacity and some tribal casinos within Michigan say they are allowing 80% capacity.

© Eric Seals, Detroit Free Press Revolving electronic signs tell people about the face mask policy inside the MGM Grand Detroit,

More: Analysts: Detroit casinos may be reopening, but restrictions will drain city revenue

More: Reopening plans for Detroit casinos include ban on smoking, poker, buffets

The 15% rule was laid out in an executive order last week from Gov. Gretchen Whitmer, who lifted her earlier order that shuttered the Detroit casinos March 16 after coronavirus hit.

© Eric Seals, Detroit Free Press As people come into the MGM Grand Detroit when it opens back up on August 7, 2020, a thermal scanner will read each person's temperature. People entering have to have a reading under 100 to come in.

All casino visitors must wear masks and pass temperature checks to get inside, and they will discover that some building entrances have closed.

Visitors can no longer smoke or vape on the gaming floor — only in new outdoor designated areas. The bars on casino floors are still open, but customers now must sit down to drink at a table or in front of a game or slot machine, which means no more walking around the floor with a cocktail in hand.

Other changes include:

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  • No poker
  • No valet service
  • Fewer open restaurants
  • No self-serve buffet

During a recent pre-opening tour of MGM Grand Detroit, normally the busiest of the three Detroit casinos, the casino's President and Chief Operating Officer David Tsai said the 15% capacity rule means that roughly 1,800 people are allowed on the casino floor at any one time.

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He showed how hundreds of MGM's slot machines have been turned off to ensure that customers keep a good distance from each other. Only about 40% of the slot machines will be working on reopening day.

Most table games besides poker will be back, although at reduced player capacity and with Plexiglass dividers. The new BetMGM Sportsbook will be open for sports betting, however, the Sportsbook's lounge will stay closed for now.

Only two MGM casino food outlets — TAP Sports Bar and National Coney Island — will be open at first. The Wolfgang Puck Steak, Red Sauce Pizza, Bamboo Asian Cuisine, Olga's Kitchen and other outlets will remain closed.

“Over time, as business demand grows, or our 15% capacity restriction is relaxed, we will look at opening additional outlets and bring more team members back to work,' Tsai said.

Less tax revenue

The new capacity restrictions are expected to lower the amount of tax revenue generated by the Detroit casinos for the city and the state.

Prior to COVID-19, the city of Detroit received about $600,000 per day in taxes from the three properties.

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Detroit's Chief Financial Officer Dave Massaron said it is too early to predict how the new operating rules will affect tax revenue numbers. The city's budget assumes it will get $3 million per month during the casinos' initial reopening period, or roughly $100,000 per day, although 'at this point it is unclear that revenues will be at that level,' he said.

The three casinos employ a total of about 6,000 people, many of them union members. The properties have recalled 40% to 50% of their respective workforces for this initial reopening period.

MotorCity plans to reopen its hotel Friday. MGM Grand would follow in about a month, and Greektown is aiming for a Sept. 1 hotel reopening.

Eager to spend

Tsai, the MGM Grand president, said casino officials have been pleasantly surprised by the strong financial performance of other MGM properties in the country that have reopened.

He wouldn't say how much those properties' revenue remains down from pre-COVID levels, but said the cash flow 'has been stronger than we thought it might be.”

© Eric Seals, Detroit Free Press MGM Grand Detroit president and COO David Tsai near some of the slot machines on August 4, 2020, Tsai and many others have been getting the casino ready for the public which return to the casino floor at 40% capacity on August 7, 2020.

This situation might be explained in part by strong pent-up demand for in-person gambling.

“It’s all anecdotal, but a lot of guests tell us they’ve been saving up to go out and have a good time,' Tsai said. 'They’re looking to get out of the house and are looking for a form of entertainment — there’s not a lot of entertainment available right now.”

Nevertheless, those other MGM casinos have noticed a 50% drop in visits by older customers, he said.

'That’s expected. We want folks who are at risk to stay at home if they don’t feel comfortable leaving,' Tsai said. “That being said, we also find there’s a lot of guests who can’t wait to come back.'

Contact JC Reindl:313-222-6631 or jcreindl@freepress.com. Follow him on Twitter@jcreindl. Read more on business and sign up for our business newsletter.

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This article originally appeared on Detroit Free Press: Ready or not, Detroit's three casinos reopen Wednesday with capacity restrictions