Gaming briefs for Oct. 23, 2003

Thursday, Oct. 23, 2003 | 11:24 a.m.

Union picks MGM Grand as lead company in negotiations

DETROIT -- Unions for workers at the city's three casinos said Wednesday that they have selected MGM Grand casino as the lead company in contract talks.

Bargaining will continue with MGM, while negotiations with the Greektown and Motor City casinos will be in recess, the Detroit Casino Council said.

The council includes the five unions representing Detroit's casino workers. Three-year contracts for 5,900 casino employees expired Oct. 16. The next day, workers overwhelmingly authorized a strike.

The casinos employ about 7,000 workers and take in about $3 million a day in revenue.

"Our goal continues to be a fair and equitable contract that improves wages, benefits, retirement security and dignity on the job for the hardworking women and men who make Detroit's downtown casinos solid financial successes," Elizabeth Bunn, the chief negotiator for the Detroit Casino Council, said in a written statement.

Bunn said no strike deadline has been set at any casino and union-represented workers at all three casinos will continue working under day-to-day contract extensions.

Yvette Monet, spokeswoman for MGM MIRAGE, the Las Vegas-based parent of MGM Grand in Detroit, would not discuss specifics of the talks.

"We are working very hard to resolve any issues," Monet said. "As a company we feel very positive about reaching an agreement and moving forward."

Profit improves for company

MORGANTOWN, W.Va. -- The parent of Charles Town Races & Slots today reported a $13.6 million profit, amounting to 34 cents per share, on revenue of $316.1 million for the third quarter.

That's up from $9.9 million, or 25 cents per share, on revenue of $174.4 million for the same period last year, Penn National Gaming Inc. announced.

Chairman and CEO Peter Carlino said there was improvement at every property the company has owned for at least a year, with the West Virginia track continuing to lead the pack in the period ending Sept. 30.

Since adding slot machines earlier this year, Charles Town has seen a 34 percent increase in earnings before interest, taxes and depreciation, he said. Its revenue totaled $90 million, up from $69.3 million for the same period last year.

Penn National's third-quarter figures reflect the success of its long-term plan to expand its portfolio of gambling properties and invest in expansions. In March, the Wyomissing, Pa.-based company purchased Hollywood Casino Corp., with properties in Tunica, Miss., Aurora, Ill., and Shreveport, La.