Greektown Casino Owners Being Hit with Former Owner Fines

The state of Michigan has a handful of casinos spread throughout the two peninsulas. Most of the casinos are located on Indian reservations, which allows for the creation of casinos while avoiding many of the same tax issues that would come up regarding a traditional casino. Detroit is one of the few cities in the state that has allowed the creation of non-Indian casinos. These casinos were allowed in through a city-wide vote. Within the city of Detroit itself there are three casinos. The MGM Grand, the Motor City Casino (owned by the same family that owns the Detroit Tigers, Redwings and several entertainment facilities throughout the city of Detroit, as well as Little Caesars) and the Greektown Casino. Across the river in Windsor, Canada, Cesar’s Palace is located right along the water as well, so there are some gambling options. Of all the casinos, Greektown Casino has run into the most financial trouble and, recently, new owners of the casino are facing fines that are stemming from previous owners.

The Casinos

None of the casinos in Detroit are located near one another, so these different casinos don’t necessarily have immediate competition with one another based on location. Of the three casinos in the city of Detroit, Greektown Casino is the only one that is really centrally located. The Motor City Casino is positioned on the outskirts of downtown right off of the highway. MGM Grand is located further inland to the city, yet is still not right in the downtown area. Greektown has long been a favorite area of downtown Detroit as it houses a large population of Greek immigrants, along with Greek food and other offerings. With the casino located in this prime location, it is the only one of the three major casinos within walking distance from the Detroit entertainment district and other top sporting locations, such as the Redwings, Tigers and Lions. With that being said, the Greektown Casino has also run into the most financial issues behind its creation, which is why current owners are still being fined for the previous owners.

The Fines and Violations

In early September, 2015, Greektown Casino LLC was ordered to pay over half a million in fines that had come about from the previous owners. These fines took place over a four year period, dating from 2010 to 2014 while it was owned by Greektown Superholdings Inc. The casino is now owned by Dan Gilbert who has played a major role in the recent financial improvements in the city of Detroit. While he owns the Cleveland Cavaliers, he also owns Quicken Loans, which he moved to downtown Detroit, bringing with it thousands of jobs. He has also purchased major property locations throughout the city and has become a major player in the Detroit downtown revolution. His side company, the Greektown Casino LLC, did know about most of these fines, so he was able to work it into the buying price when he purchased the casino around a year ago, so these are not a shock to him, although the financial numbers are now being released to the general public.

The largest fine comes with a failure to report a land swap deal of nearly a half million dollars. The fine for this hit $150,000. The other violations include minors under the age of 18 found inside of the casino along with serving underaged individuals. This came with a total fine of $31,500. A violation of board orders cost $220,000, customer disputes to several disassociated persons came to a total of $50,000 and other violations regarding licensing hit $180,000 for the total of $530,000 in fines.

Taking Care of the Situation

Dan Gilbert’s company has stepped up to make everything right and to pay the violations, even though these violations did not happen under their watch. The original owners of Greektown Casino never had the right financial backing when building the casino which caused several problems. MGM Grand is backed by MGM, which is one of the most known casino brands in the world. The Motor City Casino is backed by one of the most known and wealthy families in Detroit, yet the Greektown Casino struggled to secure all of the necessary financial structure required to own and operate not only a casino but the included restaurants, bars and hotel found inside of the facility. Gilbert has the financial security to maintain and to build up the casino. So, he should continue to make his financial impact on the city of Detroit.

No Casinos in the Near Future

Three city casinos and the fourth in Windsor, Canada appear to be all of the casinos that are going to be in the city for the foreseeable future. Just over a year ago, there was an attempt to get voters to sign off on the construction of seven additional casinos in and around the city, but voters turned this number down as they saw it as too much of one thing inside of the city. Now, with the recent inclusion of new businesses, ranging from Quicken Loan to Amazon opening up a branch in Detroit, the city itself is looking like it is going to make an excellent comeback while the current casinos are going to prove profitable and stronger than ever before with the help of the creation of a stronger Greektown Casino, which helps anchor that district of the city. So, for gambling fans looking to visit a world class city, there are three casinos located right in the heart of the city and is offering several beneficial services that is sure to boost all of the people’s gambling potential throughout the city of Detroit.

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1 Comment

  1. For us, that was a big number of fine, but for the company, it not significantly influence the financial report, due to the casino huge revenue. The fine will bring the company more carefully to do the business. I’m sure the fine expense will return in no time.

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