1.31.08
Detroit businessman buys stake in Greektown Casino
Robert Snell / The Detroit News
DETROIT -- A Bloomfield Township gambling executive who helped bankroll the successful statewide ballot initiative that led to Detroit's three casinos will become a new minority investor in Greektown Casino, according to a press release from the casino.
Tom Celani, a former MotorCity Casino investor, bought a 22-percent stake in the casino, an investment one gaming analyst said would cost approximately $200 million.
The move is expected to be approved by the Michigan Gaming Control Board since Celani already has a gaming license. Celani, who also will be named president of casino operations, is expected to use his local expertise to help Greektown better compete with the other two casinos and oversee an expanded casino and new hotel opening this fall.
"If it is 22 percent, that is a big chunk and will strengthen the financial capability of the casino's owners," said Jake Miklojcik, a gaming expert and president of Lansing-based Michigan Consultants. "And it brings in some additional southeast Michigan moxie and management."
Celani's expertise could be most noticeably felt in the type of amenities offered at the casino and with enhanced advertising, he added.
Celani's involvement comes at a time when Greektown continues to trail the other two casinos in revenue and market share.
Michigan's wagering tax brought in $160 million in 2007, yet Greektown Casino's revenue trailed those of MGM Grand Detroit Casino and MotorCity Casino, according to the Michigan Gaming Control Board.
MGM Grand Detroit Casino extended its market leadership last year with revenues of $513 million compared to $480 million for MotorCity Casino. Greektown Casino's market share fell to 25.6 percent and its revenue dropped 1.1 percent to $345 million.
The city's three state-licensed casinos took in $1.335 billion in 2007 as revenue growth slowed to 2.4 percent, Michigan regulators said.
Greektown is in the midst of a massive expansion.
The casino opened a new 2,900-space parking garage in November and will unveil a 39-story, 400-room luxury hotel this fall.
Celani, 52, is head of Novi-based Luna Entertainment, and oversees a sprawling empire that includes residential and commercial ventures and casino development and management in several states.
A Luna company developed the Little River Casino Resort in Manistee and he also owns Motor City Harley-Davidson in Farmington Hills and is an investor in MJR Theaters.
You can reach Robert Snell at (313) 222-2028 or rsnell@detnews.com.
Tom Celani, a former MotorCity Casino investor, bought a 22-percent stake in the casino, an investment one gaming analyst said would cost approximately $200 million.
The move is expected to be approved by the Michigan Gaming Control Board since Celani already has a gaming license. Celani, who also will be named president of casino operations, is expected to use his local expertise to help Greektown better compete with the other two casinos and oversee an expanded casino and new hotel opening this fall.
"If it is 22 percent, that is a big chunk and will strengthen the financial capability of the casino's owners," said Jake Miklojcik, a gaming expert and president of Lansing-based Michigan Consultants. "And it brings in some additional southeast Michigan moxie and management."
Celani's expertise could be most noticeably felt in the type of amenities offered at the casino and with enhanced advertising, he added.
Celani's involvement comes at a time when Greektown continues to trail the other two casinos in revenue and market share.
Michigan's wagering tax brought in $160 million in 2007, yet Greektown Casino's revenue trailed those of MGM Grand Detroit Casino and MotorCity Casino, according to the Michigan Gaming Control Board.
MGM Grand Detroit Casino extended its market leadership last year with revenues of $513 million compared to $480 million for MotorCity Casino. Greektown Casino's market share fell to 25.6 percent and its revenue dropped 1.1 percent to $345 million.
The city's three state-licensed casinos took in $1.335 billion in 2007 as revenue growth slowed to 2.4 percent, Michigan regulators said.
Greektown is in the midst of a massive expansion.
The casino opened a new 2,900-space parking garage in November and will unveil a 39-story, 400-room luxury hotel this fall.
Celani, 52, is head of Novi-based Luna Entertainment, and oversees a sprawling empire that includes residential and commercial ventures and casino development and management in several states.
A Luna company developed the Little River Casino Resort in Manistee and he also owns Motor City Harley-Davidson in Farmington Hills and is an investor in MJR Theaters.
You can reach Robert Snell at (313) 222-2028 or rsnell@detnews.com.
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