"Analysts say Detroit’s gaming market is saturated, with increased competition from new Ohio casinos and aging patrons who are choosing to entertain themselves in other ways — all of which contribute to leaner bottom lines for casino operators," reports Michael Martinez.
Quicken Loans founder and CEO Dan Gilbert bought majority interest in the struggling Greektown Casino-Hotel in April 2013, stating plans for a $150 million renovation. According to filings with the Securities and Exchange Commission and reported by Martinez, however, Gilbert has scaled back the renovation to $25-50 million.
The scaled back renovation plans reflect deflating revenues at all three of Detroit's casinos (local gaming revenue is on pace for a third-consecutive year of decline): "Last year, Greektown’s revenue fell the sharpest of Detroit’s three casinos, down 6.7 percent, to $328.3 million. By comparison, revenue dipped 6.3 percent in 2013 at MGM Grand and 1.2 percent percent [sic] at MotorCity."
