Michigan Gaming - Michigan Gaming Newsletter

February 5, 2010

Volume 16, Issue 5

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Detroit City Council Approves Greektown Casino Settlement

Yesterday, The Detroit City Council voted 6-3 in favor of a settlement with Greektown Casino that, according to Charles Moore, the casino’s lead restructuring advisor with Conway MacKenzie, resolves all open disputes between the city and the casino over development agreement and tax issues.

According to The Detroit News, the settlement includes an immediate payout to the city of Detroit of $3.5 million for legal fees and an additional $9.6 million upon the casino’s exit from bankruptcy.

Single Event Sports Betting to be Considered in Canada

According to a recent report from CBC News, a Canadian federal politician has reintroduced the possibility for modified sports betting rules in Ontario, Canada. If passed, new modifications would allow for single-event sports betting to be offered at Casino Windsor, located in Windsor, Ontario, Canada.

Joe Comartin, New Democrat Party Member of Parliament for Windsor-Techumseh, told CBC News that he believes single-event sports betting would be a ‘tool’ to draw Americans to Canada. Comartin is currently working with the Canadian Gaming Association and the CAW Local 444, which represents 2,800 Caesars Windsor workers, to change the criminal code to allow this type of betting.

Although Comartin is not the first politician to approach the government asking for a change to the criminal code to allow this type of betting, he is the first Federal Member of Parliament to address the issue.

Rick Laporte, president of CAW Local 444, told CBC News last Friday, “[w]e think that might be the edge that we may need to remain competitive with the other Detroit and Ohio casinos in the future.”

Under Canadian law, persons can currently bet on sports using the government run Proline, however it only allows players to place parlay bets, which require three bets on at least two separate sporting events. Nevada is currently the only jurisdiction in North America that offers single-event sports betting.

“The Americans would certainly come to Windsor just for the sports betting, and then hopefully they’ll bring other people with them,” Comartin told CBC News.

Ohio Lawmakers Approve Statewide Ballot Initiative to Change Casino Location

Issue 3 was passed last November with a 53 percent Ohio voter approval, thus allowing four casinos to be built in the state of Ohio. Since voter approval, opposition has come from the city of Columbus. Recently, those in opposition have persuaded Ohio lawmakers to approve a plan to allow Penn National Gaming, Inc. to change the location of its proposed Columbus casino.

The new plan will be placed on the May, 2010 primary ballot for voters to decide whether to amend restrictions on the recently passed Issue 3. The new amendment would change the planned Columbus casino location from the downtown Arena District to a former GM auto plant approximately eight miles west of the downtown area.

State Rep. Kevin Bacon (R) told Cleveland Live, “[t]he Arena District, when it was designed, was for family-friendly entertainment. It was never designed to have a casino.”

The May, 2010 ballot proposal will only affect the location of the Columbus casino. It will not affect casino plans in Cleveland, Cincinnati or Toledo.

“Everyone understands that gambling is coming to Ohio. We aren’t trying to stop that,” Rep. Bacon said. “We’re just asking for help from everyone in Ohio now that we have reached this compromise.”

The relocation of the Columbus casino now goes before all voters across the state of Ohio.

Tribal Casino Update

SAGANING EAGLES LANDING CASINO LOOKS AT POSSIBLE EXPANSION

According to published reports, plans to expand the Saganing Eagles Landing Casino are currently in the works.

The Bay City Times reported the Standish Township property has generated more than $120 million in net slot revenue since opening in December of 2007. An official plan of a proposed expansion is still in the design phase and has not been released.

The Saganing Eagles Landing Casino is owned and operated by the Saginaw Chippewa Indian Tribe, owners and operators of Soaring Eagle Casino Resort in Mt. Pleasant, Michigan. It sits on over 350 acres of land in Arenac County, approximately 30 miles north of Bay City, Michigan. The Casino features a 32,000 square foot gaming floor with over 700 slot machines and 40 electronic table games.

FIREKEEPERS CASINO CONTRACTOR WINS AWARD

Lansing based Clark Construction Company was awarded a 2009 Build Michigan Award from the Michigan Chapter of Associated General Contractors (“AGC”) for the construction of FireKeepers Casino. The award was given at the AGC’s annual meeting Last Friday in Detroit.

Ground broke for the $300 million property in May of 2008. The building features a 107,000 square foot gaming floor complete with a variety of lounges and five new restaurants. It is located on Michigan Avenue near Exit 104 of I-94, just outside of Battle Creek, Michigan.

GUN LAKE CELEBRATES PLACEMENT OF CASINO’S LAST STEEL BEAM

Last Friday, January 29, 2010, people gathered to celebrate the placement of the last beam of the iron frame work for the construction of the new Gun Lake Casino located about 20 miles south of Grand Rapids in Wayland Township, Michigan.

Gun Lake Tribe spokesman James Nye said the casino project is on schedule and may be completed by late summer, 2010.

Phase I plans call for a 83,000 square foot facility that will feature 1,200 slot machines, 36 table games, an entertainment lounge, and a casino bar. It will be operated by the Tribe’s management partner, MPM Enterprises, LLC, owned by an affiliate of Station Casinos, Inc., as well as private investors from Michigan.

For a real time view of the casino’s progress, please visit: http://gunlakecasino.com/.

RMC Legal and Resort Advantage Present Free Online Webinar Series Compliance Alert: Key Issues for 2010

On Thursday, February 25, 2010, at 11 a.m., the professionals from Regulatory Management Counselors, P.C. (RMC Legal) will be presenting part one of a three part series entitled, “Compliance Alert: Key Issues for 2010.”

The program will provide relevant information for commercial and Native American casinos in Michigan and across the United States.

The Webinar Series is being produced through the joint efforts of RMC Legal, Resort Advantage and Convey Computer Systems, Inc.

Series 1, entitled BSA, OFAC and FACTA—They’re Not Mutually Exclusive, and Your Compliance Plan Shouldn’t Be Either, will focus on the BSA and OFAC standards and gaming compliance requirements. In addition, it will take a look at FACTA/Red Flag rules and give an overview of new regulations, proposed enforcement, and potential application to the gaming industry.

Presenters include attorneys from RMC Legal.

Persons who should consider attending include: casino operator and compliance managers and directors, accountants, regulators, and lawyers.

To register for the Free online Webinar Series, please visit www.resort-advantage.com/events-news/events-webinars/bsa-ofac-facta-series.html.