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Michigan
Gaming Board Approves Transfer of Casino Ownership to Marian
Ilitch
As
reported by the Marketing Resource Group
 DETROIT,
Michigan - The Michigan Gaming Control Board today approved
the transfer of ownership of MotorCity
Casino to Detroit businesswoman Marian Ilitch.
"I
would just like to thank the members of the Gaming Control Board
and their staff for all their hard work they put into this process,"
said Marian Ilitch. "The Board really went the extra mile
to thoroughly review this agreement while meeting the deadlines
set by the MGM buyout."
The transfer
to Ilitch is subject to the conclusion of the buyout of Mandalay
Resort Group Inc. by MGM MIRAGE, Inc. MotorCity
Casino opened in 1998 and has led the Detroit market in
revenue for the past two years.
"I'm
excited by the prospect and opportunity of owning and operating
MotorCity
Casino but I also understand the responsibility of being
an economic engine to the community," said Ilitch. "We
have the best employees in the business, a wonderful location
and offer a great entertainment experience. I'm confident we
will continue to thrive."
Ilitch is
one of the leading entrepreneurs in the food and entertainment
industry and with her husband Mike, jointly owns Little Caesars
Enterprises, the Detroit Red Wings NHL hockey team, and Olympia
Entertainment.
Ilitch owned
a 25 percent interest in MotorCity
Casino as a partner in the Atwater Casino Group. Her partners
included Detroit businessman Tom Celani who owned 10 percent
interest in MotorCity, and Atwater Entertainment Associates,
a group of more than 100 local investors combined with 11.5
percent of the casino shares. As investors in the Atwater Casino
Group, Ilitch, Celani, and Atwater Entertainment owned a combined
46.5 percent interest in MotorCity Casino while Mandalay owned
53.5 percent.
In March
2005, Ilitch reached two agreements to purchase remaining interests
in MotorCity.
One agreement was between Ilitch and her local partners, the
Atwater Casino Group. Investors of Atwater Entertainment Associates
negotiated with Ilitch as a group and overwhelmingly supported
the sale of their shares to her. More than 100 investors will
gain a significant financial profit as a result of the agreement.
The second agreement was reached between Ilitch and MGM MIRAGE
to purchase the interest of MotorCity Casino owned by Mandalay.
MGM MIRAGE
Inc., which has a pending $7.9 billion buyout of Mandalay, must
sell as part of the deal a controlling interest in either MGM
Grand Detroit Casino L.L.C. or Mandalay's MotorCity Casino.
The deal received approval from the Federal Trade Commission
on Feb. 16, 2005.
MGM must
sell its interest in one of the two Detroit casinos to get approval
from the Michigan Gaming Control Board for the Mandalay buyout.
Michigan law prohibits a casino company from owning a controlling
interest in two casinos in Detroit. The company can own no more
than 10 percent of the second casino.
MotorCity
Casino has 2,800 employees and 53 percent were Detroit residents
at the time of hiring. The casino paid $55 million in taxes
to the city of Detroit last year and $40.9 million in wagering
taxes to the state of Michigan. For March of 2005, MotorCity's
revenue was $40.3 million, which is 9.9 percent higher than
the 2004 figure over the same period.
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