MotorCity Casino Now Presenting Sponser of Woodward Dream Cruise

MotorCity Casino has agreed to become the presenting sponsor of the Woodward Dream Cruise.

For those readers unaware of the Dream Cruise, it is a massive car cruise along Woodward Avenue from Ferndale, Michigan on the south end to Pontiac, Michigan on the north end.

Those who were teenagers in the 1950s and 1960s view the Dream Cruise as the greatest event in the history of man.

Those who were teenagers at any other time in history view the Dream Cruise as a huge pain in the neck that destroys commerce along Woodward Avenue for two solid weeks.

It is unclear what benefit, other than advertising, will accrue to MotorCity Casino as a result of its sponsorship.

Track Construction of Firekeepers Casino With Webcam

The progress of the construction of the Firekeepers Casino can be tracked on a webcam provided by the construction company building the casino. Based upon today's status, it seems hard to believe the casino will open on schedule. The reported opening date is "Summer 2009". And yet, the exterior shell does not even appear to be completed. . .

Greektown Opens New International Buffet

The all-you-can-eat buffet, a culinary staple of casinos since the beginning of time, arrives at Greektown Casino today with the opening of the Greektown International Buffet.

The buffet, a 275 seat, $18.95 buffet, will feature made-to-order food, not pre-prepared by food vendors, but cooked to order. The publicized menu can be found here.

Sault Tribe of Chippewa Have Until February 1, 2009 To File Plan For Exit From Bankruptcy For Greektown Casino

Greektown Casino, which has been operating under bankruptcy protection since May 29, 2008, has until February 1, 2009 to file a plan for an exit from bankruptcy.

The Sault Ste. Marie Tribe of Chippewa, the tribal owners of the casino, are currently analyzing the various options available to the Tribe. One option is the sale of the casino, which would end the outflow of money from the Tribe to the casino, estimated at $47 million in 2008 alone. These cash infusions required the Tribe to lay off tribal employees, and suspend certain tribal benefits. However, the sale option would prevent the Tribe from enjoying any of the potential upside when (or if) the Detroit casino market recovers. In addition, there are few potential buyers for the casino, given the current status of the credit markets, and the global economy.

A second option is the continued ownership of the casino, which will require restructuring of the debt of the casino, and would likely involve more cash contributions from the Tribe.

Stay tuned. . .

Greektown To Hire 150 More For Hotel

Greektown casino, which plans to open its permanent hotel in February 2009, is seeking to hire an additional 150 employees to work in the hotel, in jobs ranging from housekeeping to sales representatives.

With these hires, Greektown would have hired 400 permanent employees for its hotel project. This is offset by its laying off of 89 casino operations employees earlier in 2008, due in part to its declining revenue in 2008 versus 2007.

MGM Grand Receives Two AAA Four Diamond Rankings

In a report in Crain's Detroit Business (subscription req.), MGM Grand Detroit has received two separate AAA Four Diamond ratings.

The first Four Diamond rating is for the hotel itself.

The second Four Diamond rating is for the Saltwater restaurant within the casino complex.

Iridescence restaurant at the MotorCity casino complex had been previously awarded a Four Diamond rating.

No Spa For Greektown; MGM and MotorCity Might Regret Decision

Greektown Casino's hotel, scheduled to open in February, 2009, will open without a planned spa.

Greektown's spa cancellation appears to be a combination of lack of funding, and a recognition that Detroit's casino market differs from Las Vegas. The spas at MotorCity Casino's hotel, and the MGM Grand hotel are implied to be boondoggle money-losers based upon press reports.

Maybe in just this one instance being third to market is a good thing for Greektown. . .

Casinos Continue To Feel Impact of Michigan Economy

For those who believed that casinos revenues were immune to the whims of the general economy, October revenues for the three Detroit casinos provided more evidence to the contrary.

In the aggregate, gaming revenues fell $7.1 million in October for the three Detroit casinos.

The lone bright spot was the MotorCity Casino, which saw its revenues increase slightly to $37.9 million, from $37.7 million in October 2007.

MGM Grand Detroit saw the largest drop, to $48.4 million, from $54.9 million in October 2007. MGM's year-over-year numbers are slightly deceiving, however, as October 2007 was the month of MGM's grand-opening of its permanent casino. Accordingly, its October 2007 revenues were unnaturally high.

Greektown Casino continued its slow march into irrelevance, with its revenues dropping to $24.7 million, from $25.6 million in October 2007.

More Details on Greektown Casino's Expansion

The expansion of Greektown casino's gaming space will reportedly increase the gaming floor area to a total of 100,000 square feet, with the slot floor space increased by one-third. Upon completion of the expansion, Greektown will have approximately 2,600 slot machines.

In addition, the hotel will reportedly feature a 1,100 seat live theater.

July 2008 Detroit Casino Revenues

MGM Grand Detroit: $50.5 million in July 2008, up 23.2% from July 2007, up 19.5% January-July 2008 versus 2007.

MotorCity: $39.6 million in July 2008, down 7.26% from July 2007, down 1.6% January-July 2008 versus 2007.

Greektown: $25.4 million in July 2008, down 13.2% from July 2007, down 6.68% January-July 2008 versus 2007.

Greektown's New Gaming Space To Open August 29

Greektown Casino's new gaming space is scheduled to be completed and open for business on August 29. The new gaming space is part of the renovation of the temporary casino, which is being converted into a permanent casino, together with the construction of the attached garage, which has been open since November, 2007, and the casino hotel, which is scheduled to open in February, 2009.

Greektown Targets September 2009 For Emergence From Bankruptcy

Greektown casino expects to emerge from bankruptcy on September 1, 2009.

Greektown's $150M Loan Approved

The Michigan Gaming Control Board approved Greektown Casino's $150 million construction loan for the completion of the permanent hotel and casino expansion.

The loan has already been approved by the United States Bankruptcy Court.

The loan will allow for the completion of the current construction projects.

Bankruptcy Court Approves Second Part of Greektown $150M Loan

The United States Bankruptcy Court overseeing the bankruptcy of Greektown Casino is approving the second part of the $150 million loan package which will allow for completion of the casino's expansion and permanent hotel.

The loan still awaits approval from the Michigan Gaming Control Board.

Greektown Casino Lays Off 89 Employees; More To Come

Greektown casino laid off 89 employees as part of $7.8 million in cuts after its bankruptcy filing. Most of the employees affected worked at the table games.

Man Attempts Suicide At Greektown Casino

In one of those semi-regular reminders of the darker side of casinos, a man distraught at losing money at Greektown Casino, and also distraught at breaking up with his lover, climbed a crane outside of the casino in an apparent suicide attempt, and had to be coaxed down by police negotiators.

Greektown Casino Expects To Lose $15.6 Million In 2008

Greektown Casino expects to lose approximately $15.6 million in 2008, due to expected expenses of $20 million relating to its bankruptcy filing last week.

The casino's bankruptcy filing was, in part, due to a condition of its lender, Merrill Lynch, which would not extend further credit without the protection of a bankruptcy filing.

The casino has approximately $560 million in debt to lenders, bondholders, and former owners Ted and Maria Gatzaros.

March Detroit Casino Revenues

Revenues for March 2008 at MGM Grand were up 5.94% over March 2007, to $50.2 million. This compared to decreases of 3.7% at MotorCity Casino compared to March 2007, with March 2008 revenues of $41.3 million. Revenues at at Greektown Casino were down 3.58% to $33.2 million in March 2008.

MGM Grand Revenues Up, Employees Laid Off

In some interesting news which appears to highlight the enormous expectations MGM Grand had for its Detroit location, the casino laid off "under 100" employees between January and early April, 2008, even as its revenues continued to increase.

In fact, revenues for March 2008 at MGM Grand were up 5.94% over March 2007, to $50.2 million. This compared to decreases of 3.7% at MotorCity Casino compared to March 2007, with March 2008 revenues of $41.3 million. Revenues at at Greektown Casino were down 3.58% to $33.2 million in March 2008. Greektown appears to be relegated to third place, even with its new parking structure.

The Las Vegas executives at MGM Grand must have had enormously high expectations for non-gaming revenues from the Detroit property, if revenue increases of 5.94% lead to 100 layoffs. At some point, I will crunch the numbers to see if I am correct on my theory: Although MGM Grand Detroit is first in absolute revenues, I believe it may be last in terms of revenues as a percentage of overall capital investment to open a permanent casino.

The layoffs were identified as coming in the casino's "food and beverage" employee base. This just solidifies for me that MGM Grand vastly overestimated its expected occupancy at the hotel portion of the new casino resort.

Windsor Casino Being Renamed Effective June 19

As of June 19, 2008, the Windsor Casino will be renamed Caesars Windsor. Caesars Windsor will also open a 5,000 seat venue, named the Colosseum.

Scheduled performers at the Colosseum in Summer 2008 include: Billy Joel, Patti LaBelle, Michael Bolton, Ringo Starr and His All Starr Band, Reba McEntire and Donna Summer.

Caesars Windsor will feature a new 369 room hotel tower, the Augustus Tower. The adorably named Augustus Tower will complement the casino's existing 389 hotel rooms, for a total capacity of 758 hotel rooms. It will also feature 100,000 square feet of convention space.