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Tough Times Falling on Detroit's Casinos

First floated as a redevelopment strategy in 2007, Detroit's gamble on casinos has yielded a mature market. Now come reports that even a big name investor hasn't been able to turn around the Greektown Casino.
May 28, 2014, 9am PDT | James Brasuell | @CasualBrasuell
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"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." 

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Published on Tuesday, May 27, 2014 in The Detroit News
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