Detroit's Gamble

The City of Detroit has found a profit center in casinos.

1 minute read

March 28, 2002, 1:00 PM PST

By Chris Steins @planetizen


Detroit's casinos will give the city of Detroit $100 million to wipe out its deficit as part of a new deal with the gaming companies to be announced this week, the Detroit Free Press reported. Meanwhile, a federal judge has given the city until April 10 to file papers explaining why they have continued to allow three casinos to operate in the city after a Federal Court of Appeals held that the casinos are operating with illegal licenses. That ruling stems from a five-year battle waged by the Lac Vieux Desert Band of Lake SuperiorChippewa Indians. The tribe has argued that the city's casino licensing process was not open and fair. Meanwhile, the Free Press story says that under the new deal with the three casinos, the city of Detroit will let them "reduce the number of hotel rooms they will build and will eliminate a requirement that they contribute more than $60 million over several years toward minority business development loans." The $100-million payment will be in addition to allowing the city to keep $150 million the casinos put forth to assemble riverfront land they will now not be able to use for permanent casinos, the paper reported.

Thanks to Dateline APA

Tuesday, March 26, 2002 in The Detroit Free Press

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