Much has been written about the hard
economic times. Many brick and mortar casinos have seen their annual revenues
slip below last year’s numbers. Economic analysts and fans usually look to Las Vegas to
get a pulse on the gaming economy, but Las
Vegas is not the only
destination with casinos and it certainly is not the only one with brick and
mortar casinos making less money.
The Greektown Casino in Detroit
announced on May 30, 2008
that it was filing for bankruptcy protection. The state of Michigan
has Indian gaming and for awhile that was the only type of casino action you
could find in the state. In the late 1990’s the state and city of Detroit
debated ways to raise revenue, allowing casinos was one way to both improve
employment prospects and increase tax receipts. There are three casinos in Detroit,
the MGM Grand Detroit, MotorCity Casino, and Greektown Casino. Across the Ambassador Bridge in Windsor Canada
you can find Casino Windsor which is owned by Harrah’s, the same company that owns the Caesars Palace, the Paris Las Vegas Hotel and Casino and the Bally's Hotel and Casino among others famous Las Vegas hotels and casinos.
Greektown was the last casino to
open in Detroit
and it opened in November 2000. In 2007 the MGM Grand Detroit and MotorCity
Casino became permanent casinos, but the Greektown Casino did not meet revenue
projections and it was not granted permanent casino status. Even though the
casino is filing for bankruptcy according its spokesman they still draw nearly
16,000 people a day. The Chippewa Indian tribes of Sault Ste. Marie are the
principal owners. This bankruptcy filing will only hasten the complete failure
of this casino as a business venture. Its customers will go to the other Detroit
casinos or even to Casino Windsor.
The Greektown Casino is just one
example of how difficult it is to operate a successful casino. Owning and
running a business largely based on cash in a region of the country that is
suffering from high unemployment means the owners are taking a gamble
themselves.
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