According to a review of monthly casino revenues published by the Michigan Gaming Control Board (MGCB), average monthly gaming revenue at MotorCity Casino for the 12 months prior to the June 2007 opening of MCC's expanded gaming floor were $39,641,650.62.
In the 12 months since MotorCity opened its bigger gaming floor -- and then opening its new hotel -- average monthly revenues for Marian Ilitch's casino have been $40,264,844.87.
Increasing the gaming floor by 25% -- and adding a 400-room hotel to the property -- MotorCity Casino Hotel has realized a 1.57% increase in its monthly gaming revenues.
Can that be what investors expected?
It's been reported that Marian Ilitch borrowed $1 billion or more in order to acquire MotorCity Casino from MGM Mirage and then complete the expansion of the gaming floor, add the hotel, and cover the costs of debt service during the construction.
When the MotorCity Casino construction project started it was announced the project would cost $275 millon and would be completed by the end of 2007. The expansion project is still not complete and the Detroit Free Press has published construction costs at $300 million -- almost 10% higher.
During the last two years Moody's and Standard & Poor's have both downgraded credit ratings for CCM Merger, Inc., MotorCity Casino's parent company, because the casino's debt ratios had grown higher than originally anticipated during the construction period.
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