Tribe Sells 40% Stake in Detroit Greektown Casino

A 40% interest in the Greektown Casino was sold by the Sault Ste. Marie Tribe of Chippewa Indians to Entertainment Interests Group for $100 million, the tribe reported May 6. The tribe remains the majority owner of the casino in Detroit.

The transaction now goes to the Michigan Gaming Control Board for approval. Entertainment Interests Group will also have to become licensed by the board, which regulates the three voterapproved casinos in the City of Detroit.

"Presuming the agreement is executed, this moves the casino's ownership structure closer to what was in place prior to the opening of Greektown Casino, when the Sault Tribe had a significant equity partner," said Tom Miller, a Sault Tribe board member and chairman of the Greektown Casino Management Board. Mr. Miller noted that before Greektown Casino opened in November 2000, the tribe shared equal ownership of the casino with a group of Detroit developers.

The group's equity investment will improve Greektown Casino's competitive position in Detroit's gaming market, said Tribal Chairperson Aaron Payment, and put the casino on track to provide significant support to programs and services that benefit tribal members.

"It's no secret that we have been seeking ways to improve our competitive position to reduce our debt and to shore up our management," Mr. Payment said. "This transaction is necessary for Greektown Casino to become a significant supporter of Sault Tribe member programs and services."

In November 2007, Greektown Casino opened its new attached parking structure, marking the completion of the first phase of construction work on the new permanent Greektown Casino and hotel. The second phase, including construction of the casino's new 400-room hotel and expanded gaming floor, is scheduled to be completed in the coming months. The casino and hotel will include a multi-purpose theater, buffet, three restaurants, and 25,000 square feet of additional gaming space. Total investment in the permanent Greektown Casino project will be about $500 million.

The casino is at 555 East Lafayette Avenue in Detroit's Greektown Entertainment District.