Thursday, June 14, 2007

Mashpee Wampanoag backers initiated gambling in Detroit but were never licensed

Several of the cental characters involved in the Mashpee Wampanoag deal in Middleborough, Massachusetts have roots in the birth of Detroit's commercial gambling industry.

Herb Strather and Laurence Deitch (Larry Deitch) were early backers of commercial gaming in Detroit. They were members in Atwater Entertainment Associates LLC, an entity that was, through other affiliates, part owner of Detroit Entertainment LLC (d/b/a MotorCity Casino). However, for undisclosed reasons the pair along with several other intial "investors" were forced to divest themselves of interest in MotorCity Casino.

Here's how one media outlet summed it up:

The sale of shares by at least four partners in the MotorCity Casino was approved Monday by the Michigan Gaming Control Board.

The action could clear the way for the casino to open by mid-December.

Although the board discussed the sale in a closed session and would not divulge details about the sales, people familiar with the sales said those selling their shares include:

Herb Strather, one of the founding partners of Atwater Entertainment, which pushed for casinos in Detroit for at least the past six years.

Nellie Varner, Strather's business partner for 20 years, former treasurer of Mayor Dennis Archer's mayoral campaign and fellow founder of Atwater Entertainment.

Mike Malik, a partner in North American Gaming, which manages a casino for an Indian tribe in Manistee.

Larry Deitch, a University of Michigan regent and the lawyer who wrote Proposal E, the 1996 ballot measure that state voters passed to authorize casinos.

Malik, Varner and Strather are members of the 12-member management committee of the casino. All three were instrumental in pushing to get casinos in Detroit.

The three plan to sell their shares after gaming board investigators told them there were problems with their applications for gaming licenses, people familiar with the situation said.

The board has been investigating the MotorCity Casino group for more than a year.

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