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A comprehensive archive chronicling the activities of Motor City casino syndicators (Marian Ilitch & Family, Michael Malik, Herb Strather, etc.); their associates, partners & affiliates; and the unfulfilled commercial & Indian casino schemes they are bankrolling in Michigan (Port Huron, Flint Township), Hawaii (Waikiki), New York (Long Island / The Hamptons), and California (Barstow).
Friday, June 12, 2009
Ilitch makes rare TV appearance; takes credit for whatever's good in Detroit right now
Thursday, June 11, 2009
Revenue rises at struggling Greektown but Ilitch-owned MotorCity Casino sees declines again
Greektown was the only Detroit casino to see an increase, while revenues at MGM Grand Detroit and MotorCity Casino dropped 10.9% and 3.6% respectively.
It should be noted that Greektown in particular has struggled financially in recent years and in May 2008 filed for bankruptcy protection. So, bragging rights about revenue growth at Greektown in May 2009 as compared to May 2008 should be tempered. May 2008 represented perhaps the lowest point in Greektown's financial health.
Despite a major renovation at MotorCity Casino including the addition off theaters, conference and restaurant amenities, and a 400-room luxury hotel, it has generally failed to meet financial expectations since Marian Ilitch acquired control of the property from MGM Mirage in 2005. Both Moody's and Standard & Poor's have now established a steady pattern of declining credit ratings for MotorCity's financial parent during this period.
Among numerous other affiliates, Ilitch controls CCM Merger, Inc. which is the highly leveraged financial parent of Detroit Entertainment LLC (DELLC) which is the entity that does business as (dba) MotorCity Casino. In December 2008, CCM Merger broke its financial convenants and as a result, investors demanded Marian Ilitch inject $45 million cash into the enterprise.
Financial results published by MGCB
Tuesday, June 09, 2009
Ilitch must announce intentions for Joe Louis Arena June 30
... Mike and Marian Ilitch, the franchise’s owners [Detroit Red Wings] since 1982, have until June 30 to tell Detroit if they will modernize the 30-year-old, city-owned Joe Louis Arena or construct a new venue that likely would cost $300 million to $400 million.
Renovating Joe Louis reportedly could cost $180 million or more.
The lease expires July 1, 2010, but the Ilitches are contractually obligated to tell the city a year ahead of time their intentions. Doing nothing renews the lease for 20 years.
The team and city have been hush-hush about their Joe Louis talks. Scuttlebutt says the Ilitches want an extension to continue negotiations while they map out a plan for a new venue — likely on the land in the Foxtown area they’ve been buying up in recent years. (Full Post)
Monday, June 08, 2009
Is Marian Ilitch behind plans to develop Indian casino at New York's Belmont Park Race Track?
Detroit's Marian Ilitch and her casino and real estate partner Michael J. Malik, Sr., formed the casino syndicate Gateway Casino Resorts in 2003 to pursue Indian gaming ventures with the Shinnecock Indian Nation of New York. The tribe is not yet federally recognized by the U.S. Department of Interior, Bureau of Indian Affairs, but has a reservation in Southampton, NY.Ilitch and affiliates are reportedly paying the Shinnecock's legal and lobbying bills and if the tribe wins federal recognition, Ilitch and affiliates would have the exclusive right to develop and manage any casino resort the tribe would develop and operate. According to Opensecrets.org, they have spent more than $1.6 million alone in federal lobbying activities.
Initially Ilitch and partners sought to develop a 65,000 square foot casino project in Hampton Bays part of Long Island's posh Hamptons resort area -- 4.3 miles from the tribe's offices and 85 miles from New York's Times Square. The tribe owns property known as "The Westwoods" north of Newtown Rd. and broke ground on that project in 2003. That project has subsequently met with much resistance and is stalled.
In 2007, Ilitch and her partners, made a bid that would have allowed Gateway and the Shinnecock to develop a casino resort project on the grounds of the Aqueduct Race Track in Queens, NY -- approximately 14 miles from Times Square. That casino would have been 495,000 square foot -- 7.5 times the size of the original casino proposed for the Hamptons and 4.5 times larger than Ilitch's MotorCity Casino in Detroit.
Now the Shinnecock tribe, which has had its desire for federal recognition fast-tracked thanks to funding and support from Ilitch and affiliates, is bidding to develop and operate a casino project at Belmont Park Race Track -- approximately 19 miles from New York's Times Square. Presumably Ilitch's affiliates are part of this latest Shinnecock casino scheme.
Marian Ilitch and her husband Mike Ilitch own the Detroit Red Wings NHL franchise and c0-founded Little Caesars pizza stores. He also owns the Detroit Tigers and she owns the struggling MotorCity Casino, one of three large Las Vegas-style casino properties in Detroit. Their parent company is the privately held Ilitch Holdings, Inc.
as proposed by Shinnecock/Gateway
View Various Proposed Shinnecock Casino Sites in a larger map
Sunday, June 07, 2009
Shinnecock Indians eye casino at Belmont Park racetrack
NEW YORK (AP) — You can't bet on the biggest longshot at Belmont Park — not yet, anyway.
The finish line is still far off, but for a tiny Indian tribe eking out a living in the heart of one the world's richest communities, Long Island's famed racetrack could be the place where their fortunes change.
As the thoroughbred racing world turns its attention to Saturday's 141st Belmont Stakes, members of the Shinnecock Indian tribe have said in recent days they are willing to consider Belmont Park as the location for the casino they want to open.
The track is located just outside New York City, meaning millions in the metropolitan area could satisfy a gambling yen without a trip to Atlantic City or to Indian-run casinos in Connecticut, both at least 90 minutes away. But there are many hurdles to leap before the roulette wheels start spinning.
The Shinnecock, whose earlier plans for a casino in Southampton sent shudders through their wealthy neighbors in 2003, reached an agreement with the U.S. Department of Interior last week that speeds up the process for the tribe to receive formal recognition by the Bureau of Indian Affairs — necessary before any tribe can even consider opening a gambling facility. Tribal representatives were in Washington on Wednesday, where they were expected to make their case for federal recognition, which the tribe has been seeking since 1978.
"As Indian people, even though we've maintained who we are for generations, and surrounded by some of the wealthiest communities in the country, perhaps this recognition will help some of our neighbors better understand us and foster a new mutual respect," said Shinnecock trustee Randy King.
"We have long prided ourselves on the good relationship we have had with the state of New York and the local community around our reservation," Shinnecock trustee Gordell Wright said. "We fully intend to remain good neighbors as we pursue opportunities to provide jobs for our people."
Interior Department officials are reviewing ancestral records and other historical documents of the tribe before determining whether the Shinnecocks meet the recognition criteria, said BIA spokeswoman Nedra Darling. The tribe had sought to circumvent the federal approval process by seeking recognition in federal court, but a judge rejected that effort in 2007.
Even with federal recognition, the tribe would have to have other federal and state approvals. A preliminary decision on recognition is expected by Dec. 15, and final approval could come sometime next year. In addition to being able to operate a casino, the Shinnecock would be eligible for federal grants and other funding.
The Mashantucket Pequot Tribe, which runs one of two of Connecticut's lucrative casinos — Foxwoods — said it wished the Shinnecock well in its bid for federal recognition, but spokeswoman Lori A. Potter declined comment on whether it supports a possible Shinnecock casino.
"The people in the surrounding communities have indicated support," said Nassau County Executive Tom Suozzi; the track, about 70 miles from the Shinnecock reservation in Southampton, is in his county.
"This could be a home run. Belmont is the ideal location both for the operators of a casino, the residents and the local governments. If it is going to be in the region, I'd rather see it at Belmont," Suozzi added.
Tribal leaders are keeping their intentions close to the vest, saying only that they are willing to negotiate with state leaders on a location for any casino. "Anything between Suffolk (on eastern Long Island) and the Catskills could be an appropriate site," said Shinnecock trustee Fred Bess.
Added King: "We're even willing to consider locations not currently on the table."
But Belmont seems to be getting much of the attention from politicians handicapping the possibilities. State and local officials have been discussing improvements at Belmont and its surrounding community for the past several years. There has been talk of building hotels and restaurants, but few concrete proposals have come to fruition.
Suozzi, a possible contender for statewide office in 2010, said he would want to ensure school districts and local governments benefit from the income a casino would bring, and said many other questions remained before he would give his full endorsement. "We'd like to see enhancements to the local community as part of any agreement," he said.
About 500 Shinnecock tribal members now live in modest homes on a 1,200-acre reservation in Southampton. Nearby, some of the richest people in the world, including Wall Street power brokers and Hollywood celebrities, have sprawling estates worth tens of millions.
As a seaside tribe, the Shinnecocks for decades depended on fishing and whaling to support themselves. Later, the nation leased its land to local area farmers for their crops, mainly potatoes and corn.
Many of those still on the reservation work as craftspeople and artists. Others work in a variety of mainstream jobs around Long Island. They see the prospects of a casino, and the millions it could bring, as a way out of their modest circumstances.
An earlier tribal proposal to open a casino near their Southampton property ignited a stir, with some officials claiming the bucolic beauty of Long Island's east end would be adversely impacted by the influx of thousands of gamblers — not just in the summer when the Hamptons' population surges, but year-round.
A casino at Belmont, where there are major highways nearby, as well as a Long Island Rail Road station, would ease those concerns.
When the Shinnecocks broke ground in 2003 on their proposed Southampton casino, town officials raced into federal court and got an injunction to stop it. Since then, Suffolk County officials formed a task force to study the issue; County Executive Steve Levy said he is waiting for the results of that study before taking a position.
Outside the Elmont Public Library on Wednesday, residents had differing views of a Belmont casino's impact on the community.
"The biggest factor that bothers me is the excess traffic," said Giovanni Soto. "I'm not concerned with regards to crime and stuff. I've been to other casinos and it seems in general that hasn't been a problem."
Zahid Chaudry said he wanted no part of a casino. "It's just going to be a hangout for the wrong crowd," he said. "The crowd that just wants to make fast money easily. They're not working for it and that's not the type of people the hard-working people of Elmont want."
Jean Charles agreed that a casino at Belmont "is a longshot." But he said he would welcome it if it happened. "I think we're grown up enough to handle a casino. It would bring in good money."
A spokesman for a Democratic state senator in the area called the Belmont idea "an intriguing and exciting possibility." Republican state Sen. Dean Skelos's spokesman said more information is needed, but he "would be open" to an Indian-run casino at Belmont.
The Shinnecocks have also expressed interest in nearby Aqueduct racetrack, and said it is still a possibility.
New York Gov. David Paterson's administration is reviewing bids now for by several consortiums that want to run a video slot machine center at Aqueduct, about five minutes' ride from Belmont. The state was counting on about $250 million in annual revenue from 4,500 video slot machines and jobs for 1,200 people at the Queens track.
In March, the original bid winner, Buffalo-based Delaware North, said the credit collapse on Wall Street forced it to seek a restructuring of its video slots proposal because it could no longer provide the $370 million in upfront payments to the state.
Alan Meister, an economist with the Los Angeles-based Analysis Group, compiles the annual Indian Gaming Industry Report. He said so-called "racinos" have become popular at racetracks around the country in recent years; one such racino operates at Yonkers Raceway, north of New York City. He said because the Shinnecocks have yet to commit to a location or type of gambling operation, it is difficult to predict success.
"There is a potential to grow the market," Meister conceded.
Meister's report for 2007 — the latest figures available — noted that 230 tribes were operating 425 gaming facilities in 28 states, generating $26.5 billion in gaming revenue, a 5 percent increase over the previous year.
Wednesday, May 27, 2009
Ilitch has long-standing conflict of interest, Selig looks the other way
How does MLB oversee those sponsorships between MLB teams and casino operations which allow legal sports betting on their premises?...
...In Detroit there appears to be a long-standing conflict of interest with respect to the ownership of the Detroit Tigers as well as the MotorCity Casino, purchased by Ilitch Holdings, Inc. in 2005, which purportedly owns both entities simultaneously.
Michael Ilitch and his wife, Marion Ilitch [Marian Ilitch], are listed as the Tigers’ owner and the MotorCity Casino owner, respectively. The question arose when it was revealed that Marian Ilitch is Vice Chairman of Ilitch Holdings, Inc. which also owns the Detroit Tigers. But Ilitch friend and Commissioner Bud Selig overlooked the proprietary conflict and asked his staff to stand-down...
Tuesday, May 26, 2009
Court Settlement fast-tracks Shinnecock recognition, casino plans
The Shinnecock Indian Nation cleared a major hurdle toward its goal of federal recognition on Tuesday when it entered into a settlement with the Interior Department that requires a preliminary ruling on its tribal status by the end of the year.
Shinnecock leaders would like to run the first casino in downstate New York, and wrote to Gov. David A. Paterson on Tuesday, citing the settlement as an impetus to begin talks with the state on a range of issues.
After a court fight of more than 30 years, the Shinnecocks believe that federal recognition is in their grasp; they have long been recognized by the state, and a federal judge described them as a sovereign tribe in a 2005 ruling. The settlement gives the federal government until Dec. 15 to make a preliminary ruling on the Shinnecocks’ status.
The implications for New York could be considerable.
The Shinnecocks are based in Southampton, N.Y. Once federally recognized, they would immediately have the right to build a “Class II” casino on their 800-acre reservation, a designation that would mean they could have thousands of video slot machines, but no table games. Like other tribes, the Shinnecocks see a casino as a way to lift their members out of poverty, a condition highlighted by the tribe’s proximity to the extravagance of the Hamptons. (Complete Story)
Ilitch partner delinquent on Harsens Island property taxes
A search of records available at the St. Clair County Equalization Department indicates casino syndicator Michael J. Malik, Sr. is delinquent on 2008 property taxes due and payable for nine parcels of land on Harsens Island owned by his affiliate Lucky 7 Development LLC.The nine parcels have a 2009 equalized value of $1,224,500. Malik's delinquent 2008 tax bills total $9,417.57.
Malik had attempted to win approval to develop a marina on the Harsens Island property in the 1990s. More recently he has resurrected those plans and expanded them to include clustered residential units and estate lots. His latest plans however, have also failed to win approvals from local and state agencies.
Wednesday, May 20, 2009
Ilitch partner enters settlement agreement in fraudulent transfers case
The case against Malik (Goldberg v. Malik) stems from a $300 million ponzi scheme case the SEC brought against one-time concert promoter John P. Utisck (Jack Utsick) and his affiliates including Worldwide Entertainment.
Court records indicate Bruce Glatman, believed to be a California resident, was the matchmaker who brought Malik together with then Florida-based Utsick. Utsick has since taken asylum in Brazil. It's not clear how Glatman came to know Malik or the scope of other dealings between Glatman and Malik.
Malik's primary business attorney William Serwer was also involved in the transactions that resulted in the fraudulent transfers.
Malik has been the gambling and casino development partner of Detroit's Marian Ilitch for more than a decade. They bankrolled efforts during the 1990s to legalize gambling in Detroit. She is now sole owner of Detroit's MotorCity Casino.
Mrs. Ilitch and her husband Mike Ilitch are co-founders of Little Caesar's Pizza and owners of the Detroit Red Wings hockey franchise. Mike Ilitch owns the Detroit Tigers baseball team.
Tuesday, May 19, 2009
AZ Game and Fish Commission denies appeal by Michael J. Malik
The Commission entertained and denied Malik's request at its 4.17.09 meeting. He apparently has a 30-day window to make an appeal to the Arizona Superior Court.
On 8.29.08, Arizona's Pinetop Justice Court found Malik guilty of discharging a firearm while stalking elk within the quarter-mile limit of occupied residences. (See: Michigan man found guilty on charge stemming from elk hunt).
That criminal conviction authorized the Commission to take civil action against Malik at its 12.05.08 meeting. (See: Michigan man assessed $14,995 for killing trophy elk near homes).
Malik reportedly has yet to pay the $14,995 civil fine assessed by the Commission in December 2008.
Malik is the gambling and casino development partner of Detroit's Marian Ilitch. She is sole owner of MotorCity Casino. Mrs. Ilitch and her husband Mike Ilitch are founders of Little Caesar's Pizza and owners of the Detroit Red Wings hockey franchise. Mike Ilitch owns the Detroit Tigers baseball team.
Malik's Growing Record of Illegal Activity
In 1999, the Michigan Gaming Control Board (MGCB) failed to grant Malik a gambling license and he was forced to divest himself of interest in Detroit's MotorCity Casino. Among other things, it was reported that Malik had been arrested in 1997 and accused of beating a girlfriend's 12-year-old son. He served a year of probation in the matter.
Since the MGCB denied Malik a license, he has developed a growing record of illegal activity:
- The criminal and civil actions in Arizona noted above related to Malik's illegal discharge of a firearm. He's been assessed multiple fines and stripped for the next five years of his right to hunt in 32 states.
- Malik has twice (2006 & 2009) been found guilty of, and fined for, violating California's political reform laws. Over the course of several election cycles, he's simply failed to report more than $52,000 in political contributions.
- Fifth Third Bank, a Michigan Banking Corporation filed a complaint in Oakland County Court on 4.03.09 (Fifth Third Bank v. Michael M. Malik, Sr.) alleging Malik was in Default on a $1 million line of credit that had come due on 9.01.08.
- In April, Malik entered into a Settlement Agreement (Goldberg v. Malik) with a court appointed Receiver who contends Malik received more than $620,00 in fraudulent transfers. Malik has twelve months to repay the funds as agreed. That action is related to a $300 million ponzi scheme case brought by the SEC against Worldwide Entertainment and promoter Jack Utsick who has since taken asylum in Brazil.
Is this known record of illegal activity a red flag that there's more?
Monday, May 11, 2009
Revenues at MotorCity Casino fell 5.3% in April
In December 2008 revenues at MotorCity Casino fell 11.25% and CMM Merger Inc., parent of MotorCity Casino, failed to meet lending convenants so angry investors demanded owner Marian Ilitch inject $45 million cash into the Detroit gaming enterprise that struggles even after expanding its gaming floor space and adding a luxury hotel to the property. Ilitch acquired 100% control of MotorCity Casino from MGM Mirage and various other investors in 2005.![]()
MotorCity Casino Hotel had April revenue of $38.5 million, posting a 7.4 percent decrease compared to March and a 5.3 percent drop compared to April 2008.
According to reports published by the Michigan Gaming Control Board (MGCB) over all year-to-date revenues at a highly leveraged MotorCity Casino are down 1.7% compared to the same period in 2008.
MGCB: Detroit Casino Revenue Reports
Ilitch Malik Gaming Affiliates paid D.C. lobbyists nearly $5 million pushing Indian casinos

Updated analysis of federal lobbying expenses from 2002 through 2008 indicate gaming affiliates/partners of Mrs. Marian Ilitch and Michael J. Malik, Sr. paid Washington, D.C., lobbying firms $4,835,000 to advance various plans for Indian casino developments in New York (Shinnecock Indian Nation), Michigan (Bay Mills Indian Community) and California (Los Coyotes Band of Cahuilla and Cupeno Indians & Big Lagoon Rancheria). The data was obtained from records onfile with the U.S. Senate Office of Public Records and Opensecrets.org.
Monday, April 27, 2009
Detroit casino to benefit from Obama stimulus package
"$1.5 million to improve the parking garages and roads surrounding the Greektown Casino development in Detroit."
Tom Celani, a former founding partner in Detroit's MotorCity Casino along with Marian Ilitch and Michael J. Malik, Sr., tried to buy controlling interest in Greektown Casino back in January, according to a story published in the Detroit News, but that transaction was never consumated.
But now, according to BackRoomNews.com:
"Tom Celani, a Bloomfield Hills businessman and investor, is trying to buy Greektown Casino in downtown Detroit.
Celani, who was an initial investor in Motor City Casino, has partnered with a Connecticut-based hedge fund called Plainfield to bid for Greektown, which is being marketed to buyers through bankruptcy proceedings.
Celani says he expects he is among up to four bidders interested in the casino, which generates $300 million a year in annual revenue. Celani would not disclose the amount of his bid.
'I understand the property very well … I’ve been in the casino business for 20 years. Gaming is what we enjoy,' Celani said. 'I’d love to do it in my hometown.' "
Friday, April 24, 2009
Ilitch VP takes over as agent of affiliates pursuing New York casino
Originally organized in September 2003 as Empire Ventures, L.L.C.; one month later Serwer changed the entity’s name to Empire Associates, L.L.C.; and then in January 2004 he changed the entity’s name to Gateway Casino Resorts, L.L.C.
Serwer remains as Resident Agent of Gateway Manager, Inc., an assumed affiliate, which has yet to file a 2009 Annual Report.
Serwer, primary business attorney for gambling promoter Michael J. Malik, Sr., and his numerous affiliates, has been Resident Agent for dozens of Malik affiliates dating back to the early 1990s.
Malik and Mrs. Marian Ilitch are reportedly the principals behind the Gateway affiliates which were organized to pursue casino development opportunities with the Shinnecock Indian Nation on Long Island, NY. Gateway had pursued opportunities to manage future gambling operations at New York's Aqueduct Racetrack.
Mirroring the Gateway changes, Kotlar also recently replaced Serwer as Resident Agent of several other Malik/Ilitch gambling affiliates (Barwest, LCB Barwest, etc.) originally organized to pursue casino development and management opportunities in Barstow, CA.
Ilitch is the owner of Detroit’s MotorCity Casino. She’s vice chairwoman of Ilitch Holdings, Inc. which is the parent company of Little Caesars pizza (co-founded with husband Mike Ilitch), Detroit Red Wings, Detroit Tigers, Olympia Entertainment and scores of other Ilitch Family controlled affiliates.
See Comprehensive List: Malik/Ilitch Family Affiliates
Forbes reports drop in Ilitch net worth; value of Detroit Tigers

As part of its Billionaires List coverage, Forbes writer Claire Obusan reports:
"Pizza patriarch and sports team owner Michael Ilitch fell off the Forbes 400 in 2005 after other tycoons outpaced his $815 net worth. Ilitch bounced back a year later after revamping his Little Caesars pizza chain and watching the value of his two pro sports teams, the Detroit Redwings [sic] and Detroit Tigers, soar. In 2006 his net worth rose to $1.5 billion, and his sports and pizza empire have since successfully weathered the current recession. Ilitch's net worth was estimated at $1.4 billion this March, down 13% from 2008."As we previously reported, in its annual valuation of Baseball teams published this week, Forbes estimates the value of Ilitch’s Detroit Tigers dropped 9% in the last year and Forbes analysts anticipate further financial woes for the team during the 2009 season.
The gambling hall owned by Ilitch's wife, Marian Ilitch, is facing financial woes as well. Investors demanded earlier this year that Ilitch inject MotorCity Casino with $45 million cash; and Moody's has now placed the casino property's parent company, CCM Merger, Inc., on its "Bottom Rung" list anticipating the company will go into default.
Here are links to see how Ilitch and his various affiliates currently rank on Forbes’ various annual lists:
- 400 Richest Americans (9.17.08)
- America’s Largest Private Companies (11.03.08)
- The Business of Baseball (4.22.09)
- The Business of Hockey (10.29.08)
- The World’s Billionaires (3.11.09)
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Google News: Indian Gaming
NEWS: Bay Mills Indian Community & Casino Proposals
NEWS: Shinnecock Indian Nation (Gateway Casino Resorts) Casino Proposals
NY Times: Shinnecock Indian Nation
NEWS: Los Coyotes Indian Tribe
NEWS: Los Coyotes / Barwest Barstow Casino Proposals
NEWS: Michael J. Malik, Sr.
NEWS: Marian Ilitch
Muckety.com: Mapping Social Networks



