In 1993, Thomas Celani (a Bloomfield Hills, MI businessman; once president of his family's prized Detroit Miller Brewing distributorship; ventured into gaming as a major shareholder in slot machine manufacturer SODAK Gaming Inc.) first partnered with Michael J. Malik, Sr. (a Detroit area developer and self-identified entrepreneur) to form North American Gaming (NAG), a developer and operator of gaming facilities. Concurrently Celani formed TVC Enterprises Development Co. to represent his interests and at the same time Malik formed MJM Enterprises Development Co.
Their first big idea came together in 1994: a Bay Mills Indian casino in the Ilitch dominated Foxtown area of downtown Detroit in partnership with Harrah's; the casino would fund a new adjoining major league baseball park. While that plan made little progress, it was the start of an ongoing relationship between Celani, Malik, the Ilitch Family, the Bay Mills Indian Community and Las Vegas heavy-hitters like Harrah’s, Circus Circus and MGM Mirage.
North American Gaming backed and helped finance the 1994 casino ballot proposals in Detroit. Although approved by local voters, Governor Engler blocked the Detroit casinos from moving forward at that time.
In November 1996, Michigan voters statewide approved Proposal E, the creation of three Detroit casinos, by a 52-48 percent margin out of nearly 3.5 million votes cast. Z.R.X. L.L.C. (ZRX), a partnership that would include Celani, Ilitch and Malik bankrolled the campaign supporting Proposal E by contributing $5 million+ to fund an “11th hour” campaign advertising blitz. In recognition of their role in the success of Proposal E, Atwater Entertainment Associates a partnership of more than 100 Detroit area leaders who had originally contributed at least $25,000 each for membership in the LLC had agreed to form Atwater Casino Group (ACG) with ZRX and awarded Celani, Ilitch and Malik 85% ownership interest in ACG.
Within months of the Proposal E victory, Celani and Malik had brought in Circus Circus Enterprises and together with Atwater Casino Group formed Detroit Entertainment LLC, the company behind MotorCity Casino. Circus Circus agreed to provide the capital funding needed for the planning and development of MotorCity Casino and also reimburse Malik and Celani for the costs of the Proposal E campaign -- reimbursement of political contributions is generally not legal in states with post-Watergate political reform laws. Circus Circus would oversee MotorCity's management once it opened. And on November 20, 1997, Detroit Mayor Dennis Archer announced Detroit Entertainment would be one of two entities invited to negotiate casino development agreements with the City of Detroit.
In 1999, word leaked out of the Michigan Gaming Commission that several casino investors wouldn’t be qualified for gaming licenses. Malik was one of those individuals. Before facing disqualification and a reduction of share price, Malik sold his shares in MotorCity Casino to Marian Ilitch, moved into the offices of Ilitch Holdings, Inc. and then went into partnership with her on other gaming projects. Celani and Ilitch retained their collective 35% interest in MotorCity Casino.
Tom Celani was one of those Marian Ilitch bought-out in 2005 when she acquired 100% ownership of MotorCity Casino; however, not before Celani and other minority shareholders in MotorCity Casino sued Ilitch, seeking damages of more than $50 million, saying she violated the terms of their partnership when she negotiated the deal to buyout Mandalay Resort Group's 53.5% interest in MotorCity.
At the same time the trio pursued gaming opportunities in Detroit and plans to establish MotorCity Casino, their North American Gaming (Celani, Malik & Ilitch) began working with the Little River Band of Ottawa Indians on plans for a Manistee, MI, casino resort and the necessary gaming compact required from the State of Michigan. They were instrumental in gaining Compact approvals in 1998.
In July 1999 the Little River Band of Ottawa Indians signed a management services agreement with Celani, Malik, and Manistee Gaming LLC. Celani and Malik were the first in Michigan to be awarded such a contract by an Indian casino. The National Indian Gaming Commission (NIGC) permits such outside contracts for tribal casinos for the first five years of operation with payments up to 30% of profits. The tribe opened their temporary Little River Manistee Casino that same month.
1999 served to be a banner year for Tom Celani when he reportedly pocketed more than $30 million upon the sale of Sodak Gaming Inc. of Rapid City, S.D., to the world's biggest slot machine maker, International Game Technology (IGT) of Reno, Nev. Celani was flush with cashand poised to make some new significant investments.
Throughout the better part of the 1990s; Tom Celani, the Ilitch Family and Michael Malik, expended substantial resources pursuing opportunities in Michigan to expand commercial and Indian gaming. With a couple of big success stories under their belts, the trio decided to parlay their experience beyond Michigan but took different paths.
Starting in 2000, Ilitch and Malik pursued casinos in New York; Hawaii; Barstow, California; and with the Bay Mills Indian Community. It's unclear if Celani was also an investor in any of these projects. In fact, it's not known who if anyone else Ilitch and Malik have included in their various ventures.
Celani, working with attorney James D. “Jim” Oegema, headed west and partnered with the Smith River Rancheria (Smith River Gaming LLC); Paskenta Band of Nomlaki Indians (Luna Gaming –Corning LLC); and Ewiiaapaayp Band of Kumeyaay Indians (Luna Gaming-San Diego LLC). They acquired ownership in the commercial Red-Dolly Casino in Blackhawk, Colorado. Today Celani has consolidated his numerous business ventures under the “Luna” family of companies’ banners: Luna Gaming, Luna Properties and Luna Entertainment. Luna, among other assignments, will now manage the casino in the Cal Neva Resort at Lake Tahoe once owned by Frank Sinatra.
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