The Michigan Gaming Control Board denied Michael J. Malik a license in 1999 requiring him to sell his ownership in Detroit Entertainment, LLC (what would later doe business as MotorCity Casino). Mr. Malik however is relentless in his quest to profit in an ongoing way from a Detroit area gambling establishment.
Since 1993, Malik (and his various partners including the Ilitch Family) has pushed plans to locate an off-reservation Bay Mills Indian Community casino in the greater Detroit area (the tribe already has two casinos on its Brimley, MI reservation):
• (1993) first at the former Sears store in downtown Port Huron;
• (1994) with Harrah’s in Port Huron Township;
• (1994) with Harrah’s in the Foxtown area of downtown Detroit;
• (since 2001) at the Thomas Edison Inn site in the City of Port Huron.
Blue Water Resorts, LLC, a Malik-created entity, had a “management” contract with the Bay Mills Indian Community which was converted to a “consulting” contract in late 2007. The converted agreement grants Malik the exclusive right to develop and run a Bay Mills Indian Community off-reservation casino in the Port Huron area should he be able to secure approval for such a facility on the tribe’s behalf. Malik’s venture stands to take in up to 30% of the net profits of any such casino for the first seven years of operation. The tribe would have additional debt owing Malik’s venture for up to 30 years. A “consulting” contract does not require the approval of the National Indian Gaming Commission (NIGC). Malik, in effect, avoids licensing scrutiny by the NIGC.
By securing the rights to develop and manage an off-reservation casino for the Bay Mills Indian Community on some parcel in Port Huron, Michigan; Malik gets the financial benefit of a significant gambling facility located in the greater-Detroit market but isn’t required to get a license from the Michigan Gaming Control Board.
Further, by securing rights to an Indian casino rather than a commercial casino; Malik and his partners will pay significantly less tax to state and local authorities.
The three commercial casinos in Detroit – of which Malik was denied a partnership interest in 1999 – are required to pay the State of Michigan 12.1% of net gaming revenues and the City of Detroit 11.9% of net gaming revenues.
An off-reservation Indian casino managed by Malik’s Blue Water Resorts, LLC would be required to pay the State of Michigan 9-13% of net gaming revenues on a sliding scale and would only be required to pay the City of Port Huron 2% of net gaming revenues leaving at least 9.9% of net gaming revenues on the table. The Bay Mills/Malik venture would not be required to pay neighboring cities, townships or the County of St. Clair any percentage of net gaming revenues (literally tens of millions of dollars each year).
Since 1993, Malik (and his various partners including the Ilitch Family) has pushed plans to locate an off-reservation Bay Mills Indian Community casino in the greater Detroit area (the tribe already has two casinos on its Brimley, MI reservation):
• (1993) first at the former Sears store in downtown Port Huron;
• (1994) with Harrah’s in Port Huron Township;
• (1994) with Harrah’s in the Foxtown area of downtown Detroit;
• (since 2001) at the Thomas Edison Inn site in the City of Port Huron.
Blue Water Resorts, LLC, a Malik-created entity, had a “management” contract with the Bay Mills Indian Community which was converted to a “consulting” contract in late 2007. The converted agreement grants Malik the exclusive right to develop and run a Bay Mills Indian Community off-reservation casino in the Port Huron area should he be able to secure approval for such a facility on the tribe’s behalf. Malik’s venture stands to take in up to 30% of the net profits of any such casino for the first seven years of operation. The tribe would have additional debt owing Malik’s venture for up to 30 years. A “consulting” contract does not require the approval of the National Indian Gaming Commission (NIGC). Malik, in effect, avoids licensing scrutiny by the NIGC.
By securing the rights to develop and manage an off-reservation casino for the Bay Mills Indian Community on some parcel in Port Huron, Michigan; Malik gets the financial benefit of a significant gambling facility located in the greater-Detroit market but isn’t required to get a license from the Michigan Gaming Control Board.
Further, by securing rights to an Indian casino rather than a commercial casino; Malik and his partners will pay significantly less tax to state and local authorities.
The three commercial casinos in Detroit – of which Malik was denied a partnership interest in 1999 – are required to pay the State of Michigan 12.1% of net gaming revenues and the City of Detroit 11.9% of net gaming revenues.
An off-reservation Indian casino managed by Malik’s Blue Water Resorts, LLC would be required to pay the State of Michigan 9-13% of net gaming revenues on a sliding scale and would only be required to pay the City of Port Huron 2% of net gaming revenues leaving at least 9.9% of net gaming revenues on the table. The Bay Mills/Malik venture would not be required to pay neighboring cities, townships or the County of St. Clair any percentage of net gaming revenues (literally tens of millions of dollars each year).
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