Property in Downtown Detroit with a history of Ilitch Ownership

As a reminder... At one time or another, during the last decade members of the Ilitch family, Michael Malik or their affiliates and enterprises controlled all these properties in the down town Detroit area.

Take a look.

Nov. Revenues Boost Year-Over-Year Performance of Detroit Casinos

Solid November boosts year-over-year revenues at MGM, MotorCity casinos

12.14.2011

By Jaclyn Trop

Detroit's two largest casinos continued to improve their revenue growth for the year with a solid November, leaving Greektown Casino and Hotel lagging, according to state statistics released Tuesday.

MotorCity Casino Hotel, the city's second-largest casino by market share, posted the largest year-over-year gain. The gaming hall posted revenues of $431.5 million from January through November of this year, a 5.8 percent gain over last year's $407.9 million, the Michigan Gaming Control Board reported.

Market share leader MGM Grand Detroit experienced a 2.8 percent rise in revenues to $547.4 million.

Revenues for Greektown Casino and Hotel, the smallest gaming hall, fell 0.9 percent to $321.7 million. (Complete Story)

Hawaii's Gambling Industry Lobbyists

Hawaii's known gambling lobbyists have numerous affiliations in common, plus intermingled business/financial interests and clients with likely conflicts of interest: (A) Boyd Gaming Company transports patrons from the Hawaiian Islands to its California casinos; (B) Casino Syndicate organized by MotorCity Casino interests wants to develop and operate a Las Vegas-style casino in Waikiki. While attempting to suggest their efforts aren't coordinated or known to one another, these amateurs have been sloppy with their fingerprints.

George A. Morris (aka G. A. Morris, G. A. Red Morris, George A. "Red" Morris, Red Morris), affiliated with Capitol Consultants of Hawaii (president) and G. A. Morris, Inc. (a partner in Capitol Consultants of Hawaii). Clients: Marketing Resource Group (MRG) for a Detroit casino syndicate organized by Michael J. Malik, Sr. and Mrs. Marian Ilitch (CCM Merger/Detroit Entertainment dba MotorCity Casino); and Boyd Gaming Company (NYSE: BYD).

John H. Radcliffe, affiliated with Capitol Consultants of Hawaii (vice president and partner) and Radcliffe & Associates. Clients: Marketing Resource Group (MRG) for a Detroit casino syndicate organized by Michael J. Malik, Sr. and Mrs. Marian Ilitch (CCM Merger/Detroit Entertainment dba MotorCity Casino). It's believed he conceived and controls Citizens for a Better Way, LLC.

Elizabeth Hata Watanabe (aka Liz Watanabe, Liz Hata Watanabe, Elizabeth C. Watanabe, Elizabeth C. Jimenez) affiliated with Citizens for a Better Way, LLC as its only member and its manage; and Hata Foundation. Previous affiliations EHW LLC, EHW-II LLC, Hawaii's Big Deal Poker Tournament. Clients: Radcliffe & Associates which represents and receives payments from MRG's Detroit casino syndicate.

Locals' Perception Local
The Detroiters know that generally, locals in most communities are likley to resist the legalization of gambling or the expansion of gambling opportunities if such proposals are championed by outsiders (Las Vegas Casino Lords, Detroit Casino Syndicates, etc.). Trust is a key factor in approving proposals and locals are less likely to trust Las Vegas or Detroit casino operators whose interests might conflict with Hawaii interests. Not to mention, Las Vegas and Detroit have reputations tied to organized crime, higher crime rates, illegal activities, corruption, etc.

Truth is Detroit and Las Vegas Gambling Interests Behind Hawaii Schemes
That MRG (a PR firm) has retained the lobbyists on behalf of its Detroit Casino Syndicate client (MotorCity Casino) is intended to bury the truth that Detroit gambling interests are bankrolling and pushing Waikiki casino development schemes -- not Hawaiians!  Further, the last time the Detroiters were successful pushing plans for casino development, they were fronting for Las Vegas Gambling Lords.  Of the many yet unanswered questions: are the Detroiters via their PR firm actually bankrolling the Waikiki casino schemes on behalf of Las Vegas partners like Boyd Gaming for instance?  You're not likely to get a straight answer from the lobbyists or the Detroiter's PR firm.

See for yourself, the lobbyists hired to push the legalization of gambling in Hawaii were engaged by and are being paid by Detroit gambling interests with ties to Las Vegas Casino Lords -- not locals!

Search lobbyist registrations via the Hawaii Ethics Commission or click on the links in the Scribd.com box below.

See also,

• Marketing Resource Group: the Tom Shields-owned Political/PR Firm is a Slave to Ilitch/Malik Affiliates
• Hawaii's newest lobbyist spent big, catapulting her into the company of 'Big Boys;' Won't reveal identities of those who bankrolled schemes
• Lobbyist John Radcliffe was the First Person to Contribute to Neil Abercrombie's Campaign for Governor of Hawaii
• Hawaii Governor's New Communications Director was Paid Lobbyist for Int'l Gambling Magnate Sol Kerzner
• Capitol Consulants of Hawaii: Double Dipping Gambling Conflicts, Resume Padding Lies or Harboring Secret Partners?
• Detroiters' Lobbyist Laying Groundwork for Waikiki Gambling
• Boyd Gaming establishing first-hand knowledge of and developing customer base in Hawaii, could prove valuable to Waikiki Gambling Hall Operator

Boyd Gaming establishing first-hand knowledge of and developing customer base in Hawaii, could prove valuable to Waikiki Gambling Hall Operator

Boyd Gaming (BYD) Q3 2011 Earnings Call: October 25, 2011 12:00 PM ET

Paul Chakmak, EVP  & COO
Boyd Gaming Company 

Paul Chakmak [Executive Vice President & Chief Operating Officer]

...Moving to Downtown Las Vegas, we saw continued strength as EBITDA rose nearly 6% on higher revenues. It's important to note that this EBITDA growth came despite an $850,000 year-over-year increase in fuel costs at our Hawaiian charter service, a trend that we expect to continue in the fourth quarter.

At the property operating level, EBITDA rose about 11% as all 3 properties recorded year-over-year growth. This performance is being driven by growing strength in our Hawaiian customer segment; visitation and play among geographic Hawaiians was up significantly during the third quarter. There are several factors playing in our favor in Hawaii. First and foremost, Hawaii's economy has been strong, providing our customers greater confidence and more discretionary income. And second, we continue to be successfully in marketing to our Hawaiian customers, which help drive growth in this market segment. Importantly, we are better positioned to take advantage of growing demand from Hawaii after putting a Boeing 767 into service on our Hawaiian charter route earlier this month. This aircraft gives us 12% increase in available seats, allowing us to fly in more than 6,000 additional customers per year based on our current 5-flight-per-week rotation while improving the customer experience...

Capitol Consultants of Hawaii

Boyd Gaming Company
George A. “Red” Morris, president and lead lobbyist at Capitol Consultants of Hawaii was registered as Hawaii lobbyist for Boyd Gaming in 2005, 2006, 2007 and 2008. Morris experienced a hiatus from Boyd Gaming during 2009 and for most of 2010 but reported in November 2010 and through 2011 that he was once again a lobbyist for Boyd Gaming.

Detroit Casino Syndicators (MotorCity Casino)

Lobbyist John Radcliffe, Morris’colleague at Capitol Consultants, has been registered as a lobbyist for Detroit casino syndicators during periods that parallel Morris’ attachment to Boyd Gaming with one exception, Radcliffe was re-registered to lobby for the Detroiters for the better part of 2010.

Since about 2000, the Detroiters have made numerous attempts to legalize gambling in Hawaii and obtain approvals to establish and operate a Waikiki casino.  Now they also count as an associate former Hawaii Gov. John D. Waihee III, an attorney, lobbyist and Hawaiian Homelands champion.

Conflicts of Interest? Or Partners?
The Detroiters' schemes in Hawaii have mirrored those that got voters to approve (1996) gambling in Detroit  and secured the rights to develop and operate a Las Vegas-style commercial casino in the Motor City.  In those efforts, Las Vegas-based Circus Circus (Mirage Resorts) had been a silent, even secret partner and then originally the managing partner of MotorCity Casino.

It could be presumed Morris and Radcliffe are representing substantial competing gambling interests under the same roof and in an environment that risks creating potential conflicts; however, understanding the Detroiters' history, one could assume that the Detroiters and Boyd Gaming are operating in the spirit of partners or with an understanding of likely partners eliminating any concerns about or the potential for conflicts.  Boyd is certainly gaining valuable experience in and understanding of  the Hawaii market and developing a relationship with Hawaii-based customers/guests.

Detroit's Casinos Poised to Lose 20-30% of Their Business to new Hollywood Casino Toledo next year

Short-sighted infighting and competitive jealousy among Detroit's three casino operators 

could keep them from working together to collectively market Detroit as a destination 

with sports venues, theaters, concert halls and other attractions.

Penn National Gaming's Hollywood Casino Toledo

Matt Helm of the Detroit Free Press is reporting that Penn National Gaming is set to open Hollywood Casino Toledo in April.  The $300 million gambling palace will have 2,000 slot machines, 60 table games and 20 live poker tables; comparable in size to Detroit's three commercial casinos.  

For more than a decade, Toledo residents who had an urge to gamble got in their cars or on charter buses to make the one-hour drive north on I-75 where they could play at any Detroit's three Las Vegas-style casinos. However, with the opening of the Toledo casino, locals there hope to stem the steady traffic northward and keep that gambling money in Toledo.

Detroit casino operators won't talk in detail about where their customers live, so it's not clear how much of the $1.3 billion in revenues reported at Detroit's three casinos each year since 2006 comes from Ohio residents.

But Jake Miklojcik, a casino analyst and president of Lansing-based Michigan Consultants who is often used as a resource by Detroit's casino operators, said he has heard out-of-state gamblers -- primarily from Ohio and Ontario -- represent as much as 20% to 30% of the clientele who sign up for Detroit casino player loyalty cards.

That Detroit’s self-interested casinos now spend their efforts as Miklojcik explains, "fighting over the same patron, money Detroit is going to get anyway," may create even greater exposure for the Detroit gambling halls. "That fight over that person," Miklojcik explains, " is a zero-sum game for the industry as a whole."

Penn National is the nation's third largest gambling enterprise with vast marketing expertise and experience. Their newest casino will open with amenities including a top-notch steakhouse, live entertainment seven days a week, and plentiful parking -- nearly 2,900 spaces.  Penn National understands the importance of partnering with hotels in downtown Toledo and in nearby suburbs to offer entertainment packages with destinations such as the Huntington Center to lure visitors.  The company plans to market “over the border” in southeast Michigan as well, including billboards along I-75 and U.S.-23.

The Toledo casino will be the first of four casinos to open in Ohio since voters approved one for each of the State’s four biggest cities. Penn National will operate all four venues.  Read more

New Hollywood Casino Toledo just 1-hour for downtown Detroit

View Larger Map

Liar, Liar: Ilitch using MotorCity Casino Jackpots to Fund Gambling Habits Outside Michigan; Pay-Off Las Vegas Casino Lords and Wall Street Fat Cats

Promises, Promises: Failed!
Both Marian Ilitch (she owns Detroit's MotorCity Casino) and Michael Malik (he was a MotorCity partner until he failed to get a Michigan gaming license in 1999) were behind the campaigns in the 1990s that asked Detroit voters to approve three Las Vegas-style commercial gambling halls. They promised Detroiters that approving gambling in Detroit would result in an economic windfall and help turn Detroit around. They said that casinos in Detroit would mean Detroit would capture gaming revenue instead of loosing it to Windsor or Las Vegas or elsewere.

Ilitch/Malik and the Detroit-based founders of MotorCity Casino told Detroiters that giving their enterprise the right to develop and operate one of three commercial casinos in Detroit meant keeping gambling revenue in Detroit.

And when Marian Ilitch took control of MotorCity Casino from Las Vegas-based Mirage Resorts in 2005, Ilitch spokespersons and MotorCity ad campaigns implied that Detroit-owned meant MotorCity Casino would uniquely be inclined to keep casino money in Detroit; that somehow Marian Ilitch would see the money stayed in Detroit.

Rich Got Richer, Not Detroit
Really? Casino doors have been open for ten years and yet Forbes just ranked Detroit as the #1 Most Dangerous City in America. Last month MotorCity Casino workers were told to start paying their own health care costs or face job loses. And since opening MotorCity Casino, Ilitch and Malik have made a habit out of chasing failed casino schemes in New York, California and Hawaii funded by Detroit casino money.

So yeah, Detroit money stayed in Detroit. Some small part of it... in the bank accounts of people named Ilitch and Malik.  Forbes says Mike & Marian Ilitch are now worth $2 billion; and last year Mike Malik dropped $300,000 on a Las Vegas wedding that lasted one month and bought a $5.4 million New York City (Central Park West) Penthouse.  But last month they told MotorCity Casino workers to start paying their own health care costs.

Truth is, the millions people are leaving on the gaming table and in the bellies of slot machines at MotorCity Casino aren't even staying in Michigan.

Truth is MotorCity Casino Making Las Vegas, Foreign Banks & Walls Street Fat Cats Richer
First, Marian Ilitch's 2005 acquisition of MotorCity Casino's controlling shares and the subsequent casino renovation/expansion that followed, came at a big price; hundreds of millions in fact that Marian Ilitch borrowed from out of state banks and Wall Street. And right now it's costing Detroit.  She's financing MotorCity Casino on the backs of Detroit's taxpayers.

If MotorCity Casino wasn't so highly leveraged or had stayed true to its original financial projections and the economic studies they used to sell voters on gambling halls in the 1990s, maybe MotorCity Casino workers wouldn't have been told this last month to start paying their own health care costs or face losing their jobs.

Yes, Marian Ilitch did pony up some family cash to fund a small portion of the buyout and expansion, but in truth, she paid for her business decisions, in most part, with hundreds of millions borrowed by leveraging Ilitch assets and future MotorCity Casino earnings to attract investments from foreign banks and Wall Street. And because some of the investment "opportunities" were so risky they are rated as "junk bonds," Ilitch is paying higher interest terms.

Today, millions in cash Detroiters are leaving on the gaming tables and in the slot machines at MotorCity Casino flow directly to pay off Las Vegas casino interests, foreign banks and Wall Street fat cats.

If that wasn't bad enough, a big chunk of the millions Ilitch is raking in at MotorCity Casino have been spent attempting to expand the Ilitch gambling empire outside of Michigan -- to fund failed Ilitch/Malik ego projects.

MotorCity Casino Funding Failed Schemes to Expand Ilitch Gambling Empire Outside of Michigan
Yes, since opening the doors of MotorCity Casino, Ilitch and Malik have spent millions chasing prestige casino schemes outside of Detroit -- way outside, in New York, California and Hawaii.

As an example, here's a rough accounting of the millions the Detroiters have spent chasing just their New York City / Belmont Race Track casino dreams:

• $25 million to acquire the exclusive rights to develop, manage and operate a casino
• $5.4 million to purchase a NYC Penthouse
• $2.3 million to D.C. Lobbyists
• $1.5 million to Albany Lobbyists
• $1.5 million to Political Campaign Committees

That's more than $35 million and just what's been disclosed or which they are forced to disclose. Most of what goes on at Ilitch Holdings is kept secret and under wraps. For a decade, they've certainly incurred other expenses. Consider millions spent during the last decade:  flying a private jet back and forth to New York several times a week; paying attorneys and public relations and advertising execs in Lansing, Detroit, D.C., Albany and New York City; keeping the leaders of the Shinnecock Indian Nation in toe; and so on.

Shame, Shame!
Shame on Marian Ilitch and Mike Malik for promising they'd keep the gambling money in Detroit. Shame on them for suggesting to fellow Detroiters that if they were allowed to operate a gambling hall in the Motor City somehow Detroit would be a better place to live. Seems like the moment MotorCity Casino opened its doors, Marian Ilitch and Michael Malik forgot the promises they made to Detroit and they've never regretted their lies and misrepresentations.

MotorCity Casino Workers Told to Pay Health Care Costs or Face Job Lose; MGM Grand Detroit workers say, 'Hell No!" reject contract | Crain's Detroit Business

MGM Grand Detroit workers reject contract, will stay on the job | Crain's Detroit Business
10.28.2011

Unionized workers at the MGM Grand Detroit casino have voted overwhelmingly to reject a contract.

The rejection comes after workers at Greektown Casino-Hotel and MotorCity Casino Hotel both approved the contract.

Employees voted 1,481 to 292 against the contract, according to the Facebook page of UAW Local 7777, one of five unions that make up the Detroit Casino Council coalition of unions.

Also in the council: Hotel Employees and Restaurant Employees Local 24, Teamsters Local 372, Operating Engineers Local 547 and the Michigan Regional Council of Carpenters.

The unions are reportedly planning to picket in front of the casino this weekend, but employees will be reporting to work.

The action follows a tense stare-down last week that nearly resulted in a strike.

The Detroit Casino Council authorized a strike two weeks ago, then filed two extensions before reaching an agreement in principal last Wednesday.

The deal reportedly includes a $2,500 signing bonus for employees but also a deductable for health insurance coverage.

MotorCity Casino has struggled somewhat financially because, among other things, it hasn't produced what had been anticipated and Mrs. Ilitch has leveraged its assets more highly than had been projected. But even more significant, Marian Ilitch and her unlicensed gambling partner Michael Malik are draining millions from MotorCity Casino out of Detroit to finance their failed quests to open additional gambling halls in New York, California and Hawaii. It's a shame that they're draining profits at the same time they're telling MotorCity Casino workers they'll have to start paying for health care or be faced with job loses. Ilitch and her husband Mike are now worth $2 billion -- that's $300,000 more than a year ago.

See also:

• MotorCity Casino Workers Give Back Gains to Keep Jobs; Ilitch gets richer
• Forbes says Ilitch worth $2 Billion; Ranking #212 among Richest Americans, #5 Richest in Michigan
• Detroit #1 on Forbes' List of America's Most Dangerous Cities!
• Ilitch Gets Richer on the backs of Detroit's working class; Detroit still America's most Dangerous City
• Ilitch Unlikely to get Taxpayer Subsidies for a New Detroit Hockey Arena

MotorCity Casino Workers will Vote on Tentative Labor Agreement Tuesday

Greektown Casino workers OK agreement

10.24.2011

By Joe Rossiter

Workers at Greektown Casino voted today to ratify a new, four-year agreement by a margin of 3-1, said Shawn Ellis, communications director for Teamsters Local 372.

The union vote was the first of three that will take place in the next several days. MotorCity Casino workers will vote on the tentative agreement Tuesday, and MGM Grand Detroit workers will vote Thursday. Voting will take place at the Teamsters facility at 2800 Trumbull Ave... (Complete Story)

Motor City Casinos to Detail Deal to Workers

Casinos to detail deal to workers

10.21.2011

B y Louis Aguilar

laguilar@detnews.com

Detroit casino workers should get details of the tentative deal reached by five unions and the three gaming halls starting possibly as early as Saturday.

Union members will be briefed on the agreement this weekend, said Michelle Martin, spokeswoman for the United Auto Workers international union, whose Local 7777 was involved in the Detroit Casino Council talks with MGM Grand Detroit, MotorCity Casino-Hotel and Greektown Casino Hotel. A tentative deal was reached Wednesday.

On their websites and Facebook pages, the UAW local and UNITE HERE Local 24, which represents hospitality workers at the casinos, were not providing details of the tentative four-year agreement or even given a firm date and time when agreement briefings for members would be given. None of the casinos would reveal or confirm any details of the tentative contract.

The deal would cover the 7,090 licensed employees at the three casinos, and other workers who are not required to be licensed by the state's regulatory board.

Detroit has the country's fifth largest casino gaming market. Last year, the three casinos generated $1.38 billion in revenue, a 3 percent increase over 2009.

Some union workers have already declared they don't like the tentative deal. They have posted comments on the UAW Local 7777's Facebook page worrying that the four-year deal doesn't give them a sufficient pay hike and may increase health care premiums.

One worker identified as Carrie Williams said she worries that union families "cannot afford this contract." The casinos pushed for workers to pay for more of their health care coverage during this year's negotiations and in 2007.

Workers at all five unions authorized a strike if negotiations failed.

Thousands Threaten to Strike Motor City Casinos at Midnight

3 Detroit casinos face strike threat at midnight by thousands of workers

 10.18.2011

By Matt Helms

mhelms@freepress.com, @matthelms or 313.222.1450.

Thousands of unionized workers at Detroit’s three casinos are threatening to strike if management and labor can’t reach a deal by midnight tonight.

Negotiations were ongoing today after being extended for 48 hours past a Sunday deadline.

Representatives of several of the five unions on the Detroit Casino Council, representing dealers, hotel and restaurant workers, engineering, maintenance and other fields, couldn’t be reached this
morning.

UNITE-HERE Local 24, which represents hospitality workers at the casinos, said in a statement that members of the casino council on Oct. 11 approved a strike vote “by a margin of 97% in order to maintain the wages, benefits and working conditions they deserve” if an agreement isn’t reached.

Motor City Casino-Hotel spokeswoman Jacci Woods said only that management and the unions “have agreed to continue to meet and negotiate in good faith in hopes of reaching an agreement on a new contract prior to the new deadline.”

Greektown Casino-Hotel declined comment. MGM Grand Detroit officials couldn’t immediately be reached.

These are critical times for the casinos.

Despite having done well in the recession compared to the U.S. gambling industry as a whole, they're heavily indebted and face growing competition from Michigan’s Indian casinos and a new gambling hall set to open in Toledo next year.

Even third-place Greektown, which went through bankruptcy from which it emerged in June 2010, would have fared better without the debt all three casinos took on to build 400-room hotels required under city licensing deals, said Lansing-based casino analyst Jake Miklojcik.

“It’s like having a $300,000 house with a $600,000 mortgage,” said Miklojcik, a member of the board at Greektown during bankruptcy.

Motor City Casinos Nearing Union Contract Deadline

Deadline looms in Detroit casino contract talks

10.18.2011

By JACLYN TROP

jtrop@detnews.com

313.222.2575

Contract extension with unions is set to expire at midnight

The New Contract Affects Dealers, Bartenders And Others Involved With Gaming

Detroit's three casinos and their unions face a midnight deadline tonight to reach a new deal before a contract extension expires.

MGM Grand Detroit, MotorCity Casino-Hotel and Greektown Casino Hotel as well as UAW Local 7777 and other unions are negotiating on economic issues.

Members of the unions' Detroit Casino Council have approved a strike if an agreement is not reached by the deadline "to maintain the wages, benefits and working conditions they deserve," according to a statement by Hotel Employees and Restaurant Employees Local 24, which represents cleaning, maintenance and other workers.

The Detroit Casino Council includes workers from Local 24; UAW Local 7777, which represents dealers and slot technicians; Teamsters Local 372, which represents valet and warehouse employees; Operating Engineers Local 547, which represents engineers and other trades positions; and the Michigan Regional Council of Carpenters.

"MotorCity Casino Hotel and the Detroit Casino Council have agreed to … continue to meet and negotiate in good faith in hopes of reaching an agreement on a new contract prior to the new deadline," said MotorCity spokeswoman Jacci Woods in an email.

"I am unable to comment while negotiations are in process," said MGM spokeswoman Yvette Monet in Las Vegas.

Greektown had no comment. UAW Local 7777 did not return calls for comment.

Revenues by the three casinos have increased 2.9 percent through the first nine months of this year compared with the same time last year, according to the Michigan Gaming Control Board.

The two largest gaming halls — MotorCity and MGM Grand — have experienced revenue increases through the first three quarters. Greektown, which last year emerged from bankruptcy protection, has posted a 1.8 percent revenue loss through the first nine months of the year.

National gaming analyst Frank Fantini has said the Detroit casinos' results reflect gains from the economic recovery.

It remains uncertain how much of the revenue increases are fueled by promotional free-play credits that customers redeem at casino games.

Unlike some other states, Michigan requires casinos to count free-play incentives as official revenue.

Ilitch Gets Richer on the backs of Detroit's working class; Detroit still America's most Dangerous City

Detroit casinos revenue up overall; Greektown lags

10.11.2011

By Jaclyn Trop
jtrop@detnews.com

Detroit's three casinos recorded a strong 4.1 percent increase in revenue in September to $113.8 million compared with the same month last year, according to the state Gaming Control Board.

It is the best year-over-year comparison since April. Both April and September had five Fridays this year, but April also had five Saturdays.

"That's probably worth 3 percent or so of the 4 percent (growth)," said Frank Fantini, editor and publisher of Delaware-based Fantini's Gaming & Lodging Reports.

MotorCity Casino Hotel, the second-largest gaming hall by revenue, led the way with a 10.4 percent jump over last September to $38.4 million.

MGM Grand Detroit, the largest, followed with a 4.5 percent increase to $48.6 million.

Greektown Casino Hotel, the smallest, experienced a 4.4 percent decline in September revenues. Construction on Greektown's gaming floor, which reopened on Sept. 23 after about seven weeks, may havecut customer visits andrevenues.

The Detroit casino market has experienced revenue growth through the first nine months of this year as Michigan's economy initially showed signs of a rebound and then stagnated during the past three months as the state's jobless rate increased.

And did we mention that once again from Forbes: Detroit was named the #1 Most Dangerous City in America?


See also, 

• Forbes says Ilitch worth $2 Billion; Ranking #212 among Richest Americans, #5 Richest in Michigan
• Detroit #1 on Forbes' List of America's Most Dangerous Cities!
• Ilitch Gets Richer on the backs of Detroit's working class; Detroit still America's most Dangerous City
• Ilitch Unlikely to get Taxpayer Subsidies for a New Detroit Hockey Arena
• Ilitch affiliate retains former U.S. Senator Alfonse D'Amato's lobbying firm to push New York Casino plans for Shinnecock
• Shinnecock and Ilitch affiliate Gateway Casino Resorts paid $1.5 million to New York Lobbyists
• D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos
• Shinnecock Casino Backers have dropped $117,500 on top-ranking NY Politicians
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans
• The Latest Life & Times of a Detroit Casino Syndicator

Detroit Casino Syndicators: Strather, Celani, Malik & Ilitch

Herb Strather, Tom Celani, Michael Malik & Marian Ilitch were among those who pushed for commercial gambling in Detroit in the mid 1990s.  They were also chief backers of Detroit’s MotorCity Casino.  However, in 1999 Malik and Strather failed to receive gaming licenses from the Michigan Gaming Control Board and were among those forced to divest themselves of any interest in MotorCity Casino before the gambling hall opened its doors to the public.

Herb Strather

Strather
Strather’s original Detroit-based Atwater casino syndication moved on to form AtMashpee LLC and push the Recognition and Cape Cod casino development plans of the Mashpee Wampanoag tribe. Another Strather affiliate Maushop LLC purchased 28 acres of land on Cape Cod. Strather would later reveal that South African casino moguls Sol Kerzner and Len Wolman were the primary investors in the Mashpee venture. And in 2008, further controversy ensued when Mashpee tribal chairman Glenn Marshall admitted to federal investigators that Strather had funneled $4 million to him which was used in an illegal political contributions scheme and to pay personal bills.

In 2005, Ilitch bought out Celani, Mirage Resorts and others who were part of the original MotorCity Casino syndication.

Tom Celani

Celani
Celani, a one-time beer distributor, organized Luna Entertainment.  He had been a founder of Sodak Gaming, Inc. which was acquired by International Game Technology.  He subsequently was licensed for gaming in Nevada and took over management of the famed Cal-Neva Casino previously owned by Frank Sinatra and frequented by Sinatra's "Rat Pack" entertainment pals.

Among other gaming facilities, Celani has since become licensed to own/operate, the Fortune Valley Hotel and Casino (CO), Red Dolly Casino (CO), Rolling Hills Casino (CA), and the Kiowa Red River Casino (OK). Of those Detroiters behind the original MotorCity Casino syndication and relative to the breadth of his gaming involvement, Celani has been the least controversial and most successful opening or acquiring new casinos outside of Michigan. Celani Profile.

Malik/Ilitch
Despite Malik's 1999 failure to obtain a gaming license in Michigan, Malik and Ilitch have continued as business partners. They have been relentless in their pursuits to develop and manage Indian casinos in partnership with the Bay Mills Indian Community (MI), Los Coyotes Band of Indians (CA), Big Lagoon Rancheria (CA), Shinnecock Indian Nation (NY) spending millions on lobbying, political campaign contributions and legal work. 

Similar to Strather’s AtMashpee LLC group, Malik/Ilitch organized Gateway Casino Resorts to bankroll Federal Recognition of the Shinnecock Nation.  And like Strather, they believe that investment bought them the rights to develop and manage any future Shinnecock gaming facility. Currently they are banking on approval of plans to develop a Shinnecock casino and hotel at Belmont Racetrack on Long Island (NY). 

Although Malik/Ilitch gambling pursuits have been many and they have organized dozens of affiliates to bankroll Native American casino development plans in three states, Malik/Ilitch have failed to successfully open any new gambling facilities since Malik failed to earn a gaming license and they parted company with Celani.  

Further, while chasing casino development opportunities with Ilitch, Malik has been involved in numerous controversies including: a federal ponzi scheme case; defaults on both property taxes and a $1 million line of credit; and multiple violations of California political campaign contribution laws.

See also:

• Not so favorable report of casino syndicators Strather, Varner, Malik, Slavik et al
• Three-fourths of AtMashpee LLC investors were behind entity that morphed into MotorCity Casino
• Detroiters Strather, Deitch provided $4 million fund that enabled wrongdoing by ex-tribal chairman
• UPDATED: Formerly rejected MotorCity Casino backers Malik & Strather have taken similar paths to Long Island & Cape Cod
• Mike Malik's partners also had a history of tax dodging; court ordered real estate negligence claims; and 40+ foreclosures
• Detroit-based casino developer convicted of bribing a police officer among Gov. Deval Patrick's donors
• Tom Celani: a biographical feature from Crain's Detroit Business
• Michael Malik: The Latest Life & Times of a Detroit Casino Syndicator
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans
• How Detroit casino syndicators financed the campaign that brought Las Vegas-style casino gaming to Detroit
• The Detroit Gaming Syndicators: Marian Ilitch, Michael Malik and Tom Celani
• Six dropped from Atwater Casino Group
• Three investors must sell their Detroit casino interests
• Investors have troubled histories
• More than Two Dozen Malik / Ilitch Gaming Affiliates Pursue Casino Plans in CA, MI & NY

Former Ilitch Casino Partner wants Gov. Deval Patrick to help him collect debt from Mashpee Tribe

Investor calls Wampanoag on debt
9.29.2011

By George Brennan

Herb Strather, the Detriot developer who first invested in the Mashpee Wampanoag tribe's casino efforts in 1999, is calling on the governor to help him recoup the millions he says he spent on the tribe.

In a letter to Gov. Deval Patrick, Strather says he raised in excess of $25 million from a wide variety of investors to help the tribe gain federal recognition and pursue a casino.

He also claims that the tribe has reneged on a handshake deal to make mortgage payments for Maushop Farm, a horse stable in Mashpee he purchased for $675,000 and planned to donate to the Wampanoag once a casino was built. He produced an email from a Bank of America employee stating the mortgage is in default because of slow payments. That bank employee declined to comment Wednesday.

"We are seeking a fairness inclusion in the gaming bill that will make the tribe pay their debts before they can get a compact," Strather wrote to the governor.

A compact is a deal between a tribe and a state that sets the ground rules for how an Indian casino will operate and what payments the state would receive in lieu of taxes.

Strather's letter asks the governor to...

Much of Strather's negotiations, both for the casino and the farm, were with former tribal council Chairman Glenn Marshall. Marshall is serving a federal prison sentence after he pleaded guilty to taking some of Strather's cash and using it to make illegal campaign contributions and keeping it as a personal slush fund.

Marshall was forced to resign in 2007 after the Times reported he was a convicted rapist and that he had lied about his military record.

Still, Strather is harsher in his criticism of current tribal council Chairman Cedric Cromwell than he is of Marshall...

Most of Strather's comments about Cromwell can't be printed... (Read Full Story)

Also see:

• Massachusetts as Debt Collector for Herb Strather @ Middleboro Remembers

• Attorney Dennis Whittlesey up to his Old Tricks
• D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos
• Herb Strather Defaults on Detroit's St. Regis Hotel Project
• Attorney Dennis Whittlesey up to his Old Tricks
• UPDATED: Formerly rejected MotorCity Casino backers Malik & Strather have taken similar paths to Long Island & Cape Cod
• Controversy seems to always follow Detroit Casino Syndicator Michael Malik
• Mike Malik's partners also had a history of tax dodging; court ordered real estate negligence claims; and 40+ foreclosures

Casino Related Partners & Affiliates of Michael Malik and the Ilitch Family have paid Michigan Lobbyists nearly $240,000

Lobbying disclosures available through the Michigan Secretary of State suggest that a relative few affiliates/partners of casino syndicator Michael Malik and/or the family of Mike and Marian Ilitch (Ilitch Holdings, Inc.) have reported state lobbying activities during the last decade.

Of those that have reported lobbying activities, Malik/Ilitch affiliates have paid  $239,509.57 to Lansing lobbyists or lobbying firms.  Entities associated with a decades long Malik lead scheme to develop a casino in Port Huron (MI) have paid lobbyists approximately $88,600.  Detroit Entertainment LLC which does business as Detroit's MotorCity Casino has paid lobbyists more than $150,000.

Ilitch / Malik Affiliate or Partner	Lobbyists	Lobbying Payments
Bay Mills Indian Community 2001-2011	MUCHMORE HARRINGTON SMALLEY & ASSOC	$    72,925.63
Blue Water Resorts LLC 2010-2011	CAPITOL RELATIONS LLC DYKEMA GOSSETT PLLC WIENER ASSOCIATES	$    15,663.50
Detroit Entertainment LLC 2002-2011	DYKEMA GOSSETT PLLC HONIGMAN MILLER SCHWARTZ AND COHN LLP MUCHMORE HARRINGTON SMALLEY & ASSOC	$  150,337.66
Detroit Tigers, Inc. 2001-2011	JAMES H KAROUB ASSOCIATES MUCHMORE HARRINGTON SMALLEY & ASSOC	$          582.78
Ilitch Holdings, Inc. 2009-2011	MCLAUCHLAN, MICHAEL D	$              0.00

See also:

• Really? Poor Impoverished Indian Tribes have spent $5.6 million Lobbying for Casinos
• More than Two Dozen Malik / Ilitch Gaming Affiliates Pursue Casino Plans in CA, MI & NY
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans
• Michael Malik: The Latest Life & Times of a Detroit Casino Syndicator

Detroit Risks Hemorrhage of Michigan Gamblers

On Tuesday, 11.03.09, Ohio voters approved casinos in Toledo and three other cities. State officials and gambling interests in neighboring Indiana and Michigan are worried that millions of dollars in gambling revenues — and taxes — are at risk

From the Associated Press:

"Nevertheless, gambling industry analyst Jake Miklojcik (mik-LOH'-jik) said Detroit risks a hemorrhage of Michigan gamblers as well as those who now visit
from Ohio."

See Complete AP story: Ohio casinos to hit Mich., Ind. gambling taxes

Revenues at MotorCity Casino fell 5.3% in April

According to a story, "Greektown Casino reports slight gain in April revenue," published in Crain's Detroit Business:

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.

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.

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

BusinessWeek: Ilitch Holdings, Inc.

BusinessWeek's profile of Ilitch Holdings, Inc.:

Ilitch Holdings, Inc., through its subsidiaries, engages in sports, entertainment, food distribution, and real estate development businesses in the United States and internationally. The company owns and operates Detroit Tigers baseball team and Detroit Red Wing hockey team, as well as provides sports premiere franchises. It also owns and operates carryout pizza chain and restaurants; theatres that provides performances, concerts, broadway shows, classic movies, and family entertainment; and a hamburger and malt shop, which offers hamburgers, hand-dipped shakes and malts, American fries, sandwiches, flavored soda pop, and baked apple pies. The company also owns and operates a sports bar; and a gift shop that offers various gifts, including furniture, pottery, crystal, china, jewelry, frames, and children's toys and clothes, as well as engages in booking and operating arenas and comerica parks. In addition, it offers a fundraising program for schools, churches, sports teams, and various nonprofit organizations; and engages in the real estate development activities. Further, the company operates as a foodservice distributor and restaurant equipment provider; and manufactures private label and branded food products, including packaged retail pizza, par-baked pizza crusts, and tubs of cookie dough products for foodservice distributors, restaurant chains, industrial toppers, schools, universities, and supermarkets. Ilitch Holdings, Inc. was founded in 1999 and is based in Detroit, Michigan with distribution centers in the United States and Canada.

In a separate BusinessWeek profile, CCM Merger, Inc. (parent of Detroit Entertainment LLC which does business as MotorCity Casino) is reported as a subsidiary of Ilitch Holdings, Inc.

BusinessWeek also reports Detroit Tigers, Inc. is as a subsidiary of Ilitch Holdings, Inc.


Mich.gov: CCM Merger, Inc.; Detroit Entertainment, LLC; Ilitch Holdings, Inc.; Detroit Tigers, Inc.

Ilitch issues press release indicating CCM Merger convinced enough investors to amend credit facility

CCM Merger Successfully Amends Credit Facility
DEUTSCHE BANK AG ORD SHS
DB 2/3/2009 11:43:00 AM

DETROIT, Feb 03, 2009 /PRNewswire via COMTEX News Network/ -- CCM Merger Inc, parent company of MotorCity Casino Hotel, announced today that it has reached an agreement with the required number of lenders for an amendment to its credit agreement. "We are very pleased to have completed this amendment under these most difficult market conditions," said Gregg Solomon, CEO of MotorCity Casino Hotel. "We appreciate the leadership of Deutsche Bank Trust Company Americas, as administrative agent, and the continued support of our entire lender group."

About MotorCity Casino Hotel

Located on Grand River at the Lodge Freeway (M-10), MotorCity Casino Hotel is owned by Marian Ilitch and is the only locally-owned and operated casino in Detroit. The entertainment complex has undergone a $325 million expansion project which includes a casino expansion, 400 room luxury hotel and spa, a new convention and banquet center, several new dining options, bars and lounges, a nightclub and an intimate live entertainment theater. For more information about MotorCity Casino Hotel, visit www.MotorCityCasinoHotel.com.

SOURCE: MotorCity Casino Hotel

Moody's downgraded Credit Rating of MotorCity Casino's parent three times in ten months

Moody's Investor Service

Issuer: CCM Merger, Inc.
Long Term Corporate Family Credit Ratings History








Moody's has been forced to downgrade the Corporate Credit Ratings of CCM Merger, Inc., parent company of MotorCity Casino, three times in the last ten months. The ratings have slid from B1 t0 B2 to B3 to Caa1 all in less than a year.