Some Concerned About Detroit Casino Payback

While most states require casinos to provide detailed average payback figures for their slot machines, Michigan doesn't. And, this is causing some to ask for more disclosure. No one is claiming that the casinos are being unfair, the payouts can range from 80 to 99 percent of the buyin, but would like to ba able to compare them.

Obviously, players are going to always want a higher percentage of winning returns, but whether this leads much further is doubtful. The current rules were worked out in 1999 when the casinos first got started.

For more information, please see Lucky Detroit casinos don’t have to disclose paybacks

What's Going On With the Ohio Casinos?

So, what's going on with the Ohio casinos? As you probably recall, last month the voters in Ohio approved legislation allowing for the creation of 4 casinos. Cleveland, Toledo, Cincinnati, and Columbus are targeted for these new gaming establishments.

Here's an article about tightening some loopholes in the legislation. One bill wants to allow for background checks among casino owners and another is aiming to limit political donations. Please see Editorial: Casino maintenance begins for further information.

And, here's another article describing how Governor Strickland is pushing for more local control of the casinos. Casinos have introduced legislation exempting them from local zoning and land restrictions, and it looks like their may need to be some negotiations in the near future. For more information, please see Governor is cities' ace in hole.

Michigan Gaming Briefs

Potawatomi and Athens Reach Agreement

The Athens Village Council (Athens, Michigan) and the Potawatomi Tribe (FireKeepers Casino) have have finalized a contract regarding police coverage in Athens. As a result, Potawatami police coverage will increase in that area. Expect some changes to occur in this agreement over time.

For more information, please see Athens-tribe police contract finalized.


Odawa Casino GM Resigns

Odawa Casino (Petoskey, Michigan) GM Sean Barnard has submitted his resignation to the Little Traverse Bay Bands of Odawa Indians (Odawa Casino) and will be stepping down from his post on December 4, 2009. No specific reason was given.

For more information, please see Casino GM Resigns

Both FireKeepers and Odawa Casino offer bingo on multiple days of the week.

Ohio Casino Debate to Be Decided Tomorrow

Ohio voters will vote tomorrow (Tuesday) on whether or not to allow casinos in four of their cities, Cincinnati, Cleveland, Toledo, and Columbus. At the heart of the debate is the usual issue of jobs vs. the typical ills that casinos can bring. Both sides of the issue have a lot to lose or gain from the outcome.

Racinos Make Another Push in Michigan

We overheard a little something on the radio this morning that stated the petition drive for a Racino vote is on schedule for next year. It is debatable whether or not Michigan needs more casinos (or racinos in this case), but racetracks want the revenue that comes with legalized slot machines.

From the Detroit News:

Backers of a campaign to open eight more casinos in Michigan intend to start circulating petitions within six weeks to put a proposal on next year's ballot after their petition language won approval today.

The four-member Board of State Canvassers, a state elections panel, approved unanimously the wording for a constitutional amendment submitted by Racing to Save Michigan, a group led by officials at Hazel Park Harness Raceway. Five of the casinos would be at horse racing tracks.

Supporters say it will save the struggling horse racing industry and provide about $750 million in annual tax revenue to the cash-starved state and local governments.

Opponents say Michigan voters spoke on this issue in 2004 when they passed a ballot measure restricting gambling expansion. "I'm not sure there's an appetite out there for eight new casinos," said Tom Shields, spokesman for MotorCity Casino in Detroit.

What's worth some concern is the fact that the petition will allow 8 racinos with 5 of them located at racetracks around the state. So, that leaves 3 sites that are completely unaccounted for. Where will these racinos be located?

For further information, please see Mark Hornbeck, Board approves 'racino' ballot petition, The Detroit News, October 14, 2009.

Will Ohio Casinos Hurt Detroit?

One of the biggest reasons that we've kept up-to-date on the proposed Ohio casinos is because of the negative impact they're likely to have on the Detroit casinos, and to a lesser extent, Michigan charitable bingos. Due to be voted on in November, the Ohio proposal would allow for four casinos...one each in Cincinnati, Cleveland, Columbus, and (most worrisome to Michigan casinos) Toledo.

From the Detroit News:

Backers of Issue 3, including Dan Gilbert, co-founder of Livonia-based Quicken Loans, have been heavily courting voters throughout the referendum process by arguing that as much as $1 billion a year is spent by Ohioans every year in casinos across state borders in West Virginia, Indiana and Michigan. Gilbert, who also has championed a rebirth of downtown Detroit, is a co-owner of the Cleveland Cavaliers and has sunk millions into pushing for passage of Issue 3.

One recent television ad urges Buckeye voters to "take charge" and "keep our money in Ohio."

That kind of rhetoric is a concern for Detroit's three casinos -- MGM Grand Detroit, MotorCity and Greektown. By all accounts, Ohioans represent the single-largest group of out-of-state casino patrons in southeast Michigan, and constitute a goodly portion of business for Caesars Windsor, across the Detroit River, in Ontario.

For more information on this article, please see Nathan Hurst, Ohio may take on Detroit casinos, The Detroit News, October 12, 2009.

This casino legislation will be voted on on November 3rd. Please check back for updates.

Poll Shows Ohio Casinos May Happen, Fight Still On

In November, Ohio voters will decide whether or not they will approve the construction of casinos in 4 of their cities. Plans have been drawn for casinos in Columbus, Toledo, and two other areas. However, last year's proposal for a single casino also led in the polls and was defeated on election day.

From the Columbus Dispatch:

Seven weeks before election day, Ohioans by a wide margin say they favor a plan to put casinos in Columbus and three other Ohio cities, according to a new Quinnipiac University poll.

"Gambling opponents, who have beat back previous efforts to bring casinos to Ohio four times, have their work cut out for them if they are to prevail this time," said Peter Brown, assistant director of the Connecticut university's polling institute, in a release.

The issue was passing by a 21-point margin in the survey released today, down a bit from a 26-point lead in July but still a large hurdle for gambling opponents to overcome less than two months before Ohioans vote on state Issue 3.

Even with passage, it will likely take some time for these casinos to open, and no word on whether or not they would have bingo. Of course, any casino will certainly have an impact on nearby charity bingos.

For more information, please see Darrel Rowland, Casinos a winner, poll shows, The Columbus Dispatch, September 15, 2009.

FireKeepers Casino Reaches Amended Compact Agreement With State

FireKeepers will pay the State of Michigan 4 percent of net win revenues earned from slot machines and other electronic games under an amended agreement.

An original agreement between FireKeepers and the state had been signed in 1998, but over the last 10 years or so, other tribal casinos located in the state were able to lobby for smaller payments. These tribes were able to successfully bargain after the State Lottery's introduction of Club Keno games, which tribes felt was a violation of the payment agreements.

From the Kalamazoo Gazette:

The state of Michigan will receive less money from the FireKeepers Casino near Battle Creek under an amended compact announced Monday.

State officials say that while the new deal will provide fewer dollars, it will mean a more stable source of funding because it will limit when the casino can withhold payments.

In a written statement, Gov. Jennifer Granholm said the agreement "creates a better understanding and relationship between the state and the tribe while stabilizing a revenue stream used to enhance Michigan's economic development."

Under the amended compact, the Nottawaseppi Huron Band of Potawatomi Indians will pay the state 4 percent of the casino's net win from slot machines and other electronic games in 2009 and 2010. The percentage will then fluctuate each year depending on how much money the casino makes.

The amount will never top 8 percent, the fixed percentage stipulated in the original compact signed in 1998. Net win is the amount of money wagered minus the amount paid out.

FireKeepers new payment schedule should simply bring them in line with what other tribal casinos in the state are paying. The FireKeepers Casino opened in August and the FireKeeper Bingo Hall opened September 8th of this month.

For more information on this story, please see Aaron Aupperlee, FireKeepers Casino to pay less to state, The Kalamazoo Gazette via Mlive.com, September 15, 2009.

Grand Rapids Casino Update

There has been little news of late about the future of the Grand Rapids area casino until now. Apparently, the land involved was officially declared a reservation and Station Casinos has agreed to manage the future operation.

Below is a brief excerpt from the ReviewJournal.com:

Plans by Station Casinos to manage an American Indian casino in Michigan have taken a step forward.

The land where the casino is planned was officially designated a reservation on Monday.

The casino company’s current bankruptcy case should not affect the $200 million project, which will be financed by the tribe.

The Department of Indian Affairs on Monday announced the signing of a proclamation making 147 acres a reservation for the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians.

The Michigan casino is able to move ahead after a 10-year legal struggle by the tribe, commonly called the Gun Lake Tribe, ended on Jan. 30.

When will the groundbreaking begin and when will the casino be scheduled to open? Also, what affect will this have on area bingos and other charitable gaming? These are all things that we'll be watching.

For the complete story, please see Arnold M. Knightly, Tribal casino in Michigan takes step forward; Station to manage, Las Vegas Review-Journal,August 18, 2009.

Greektown's Future Still Uncertain

Hold, or fold?

That's the simple question, with complicated answers, facing the Sault Tribe of Chippewa as it decides what to do about Greektown Casino-Hotel.

The bankrupt Detroit gambling hall that began as a dream of self-sufficiency has turned into a legal nightmare and financial albatross that's divided 38,000 tribal members, choked the tribe's finances and forced its leaders to rethink long-term ambitions aimed at improving the lives of one of the state's most historically oppressed people.

"It wasn't supposed to end up like this," said Bernard Bouschor, a former Sault Tribe chairman who now sits on its board of directors. "Not after we spent so much time and money."

The predicament in which the tribe finds itself is serious: likely losing Greektown, which by revenue is the smallest of Detroit's three gambling halls, to creditors or a new buyer in a federal bankruptcy court hundreds of miles from home. It deeply contrasts with the bright promise the casino held for the tribe when the fight for a crack at the downstate market first started two decades ago.

For the complete story, please see Nathan Hurst, Greektown Casino: Waiting for the chips to fall, The Detroit News, August 10, 2009.

Businessman Vies for Greektown

Bloomfield Hills businessman Tom Celani said Thursday he will offer to buy the bankrupt Greektown Casino for $450 million.

Celani, one-time part owner of MotorCity Casino, told The Detroit News his lawyers would file the purchase plan with the bankruptcy court today.

He said he has partnered with Connecticut-based hedge fund Plainfield Asset Management to craft the deal. Plainfield has other gaming interests and licenses in Nevada, Colorado and New York. "We've been working over the last six months trying to get the banks to sit down and negotiate with us," Celani said. "It's been tough, but we think we can get this done."

He and his partners have quietly acquired about $10 million in Greektown debt over the past few months, to gain the right to file a plan with the bankruptcy court.

Bringing the casino out of bankruptcy, Celani said, would be the first step toward revitalizing the entire Greektown area of shops and restaurants. He wants the casino to take the lead in sprucing up surrounding businesses and buildings, and would spearhead an effort to mall off parts of Greektown and make it more pedestrian-friendly.

"We can make it even more of a destination than it is today," Celani said.

For the complete story, please see Nathan Hurst .Businessman to bid $450M for Greektown Casino, The Detroit News, July 31, 2009.

FireKeepers Casino Works to Reach Agreement Before Opening

Officials at Pine Creek Reservation, the Emmett Township Department of Public Safety and FireKeepers Casino are scrambling to get public safety agreements in place before the casino's early August opening.

That's because the agreements "have hit a last-minute snag," township Supervisor Gene Adkins said at the board's meeting Thursday.

The township board on Thursday postponed approval for the second time on a cross-deputization agreement between their public safety department and the Huron Potawatomi Police Department. In June, trustees wanted the township attorneys to review the language before voting on it.

The contract would deputize tribal police to act with authority on township property. Without the agreement, tribal police couldn't leave the casino grounds, which are sovereign Indian land, in pursuit of criminals.

Friday afternoon, tribal spokeswoman Donna Halinski said the cross-deputization agreement is not needed before the casino opens, and that the postponement of an agreement on the issue is not affecting public safety preparedness at the casino.

For the complete story, please see Justin Hinkley, Updated: Casino deals hit 'snag', The Battle Creek Enquirer, July 10, 2009.

FireKeepers Casino Hopes for Success

A little more than a year ago, drivers passing Exit 104 on Interstate 94 gazed onto corn fields that had been there for generations.

But recently, the electric glow of the mega-sign marking the location of the new FireKeepers Casino was deemed too bright for passing motorists, so it was dimmed.

The Nottawaseppi Huron Band of the Potawatomi hopes the future of the state's newest gambling facility will be just as bright.

Scheduled to open early next month, FireKeepers Casino is a $300 million gamble for a small tribe during a big recession that has brought larger, more experienced gaming operations to their knees.

"We're just happy we're opening," said Laura Spurr, chairwoman of the 1,000-member tribe, which spent 10 years battling legal blockades to open FireKeepers.

"We think we're at the right place at the right time with the right people."

The casino is one of the most ambitious tribal casino projects embarked upon in Michigan. While other facilities such as Soaring Eagle near Mount Pleasant opened to great success, Detroit's three non-tribal casinos -- MGM Grand Detroit, MotorCity Casino and Greektown Casino-Hotel -- have struggled in the past year as consumers pull back on discretionary spending.

In big gambling meccas, Las Vegas and Atlantic City, N.J., year-over-year gaming revenues have declined by double-digit percentages since last year.

"It's a tough time for all casinos, and newcomers are no exception," said Bill Eadington, a gaming expert based at the University of Nevada, Las Vegas. "But the good thing about the economy is that it will bounce back. It's just a question of how quickly."

In the troubles of others, Spurr and her tribe see potential.

For the complete story, please see Nathan Hurst, Tribe takes big gamble on new casino, The Detroit News, July 7, 2009.

FireKeepers Casino Still Expected to Open in August

We're hearing that the FireKeepers Casino is still planning on opening in early to mid August. Located in Battle Creek, Michigan, FireKeepers will have the latest in slots, table games, and bingo.

From the FireKeepers website:

Playing with fire is about to get way more fun! With over 2,680 of the latest slot and video poker games; 78 table games including blackjack, craps and roulette; a live poker room and exclusive high limit areas and VIP lounge, you’ll see why FireKeepers is Battle Creek’s newest gaming hotspot.

Of course, FireKeepers will also feature a bingo hall with the latest in electronic handhelds and bingo equipment.

We'll be sure to keep our eye on the latest developments.

FireKeepers Casino Hasn't Settled on Official Opening Date

FireKeepers Casino won’t announce a firm opening date, Marketing Director Mike Facenda said, opting instead to let the results of a series of test openings predict when the much-anticipated Emmett Township facility opens to the public.

Somewhere around the end of July or beginning of August, Facenda said, as many as four “simulation nights” will allow the casino’s roughly 1,500 employees to try their new trade on an exclusive set of invited guests. After that, casino officials and the tribal council of FireKeepers’ owners, the Nottawaseppi Huron Band of Potawatomi, will decide if operations need reworking or if they can open their doors soon thereafter.

For the complete story, please see Mike Facenda, Official: FireKeepers won't announce opening date, The Battle Creek Enquirer, July 1, 2009.

Governor Pushes for Slots in Ohio

Gov. Ted Strickland's plan to balance the budget with gambling money includes legalizing up to 15,250 slot machines at Ohio's seven horse racetracks, with most of the games plugged in by next May.

The governor's office estimates the machines will rake in nearly $1 billion in 14 months -- from May 2010 to the end of the 2011 fiscal year.

The plan would allow the state to collect 48 percent of that revenue for education spending while the other 52 percent would be split among the seven track owners and pay administrative and operational expenses, including payouts to lucky winners.

The state would also collect a one-time licensing fee from each owner, somewhere in the neighborhood of $65 million for each location depending on how many machines are at each track.

All of these figures are moving targets, said Strickland's budget director Pari Sabety, in particular the licensing fee, which some track owners may balk at.

"We've looked at some states where they have pegged the licensing fee high and the revenue share low or visa versa," Sabety said. "So If you get a big licensing fee, do you give the track owners more on the backside? So that is a lot of the kind of stuff we're going to have to work through."

Strickland, a Democrat, announced Friday, June 19, that he was reversing his stance against gambling and introduced the slots plan that he believes could net the state $933 million in the next two years.

The gambling proceeds represent crucial new revenue for Ohio, which is struggling to balance its next biennium budget in the face of a $3.2 billion shortfall.

The governor also proposed $2.4 billion in cuts to state agencies and programs as Ohio's economy and job creation efforts continue to struggle.

But Strickland's turnaround on gambling has drawn the most attention. It has provided the conference committee, a bipartisan legislative panel working to present the governor a balanced budget by June 30, some needed direction.

None of the three prior budget proposals -- from the governor, House and Senate -- included expanding gambling.

But with budget negotiations at a stalemate and the unexpected size of the budget gap, the six-member committee is likely to work from the governor's latest plan and add its own twists to the slots proposal.

Senate President Bill Harris, an Ashland Republican, has long frowned on gambling as a budget solution. But Harris said he is willing to consider the governor's plan.

For the complete story, please see Reginald Fields, Ohio could see 15,250 slot machines under Gov. Ted Strickland's budget proposal, Cleveland Plain Dealer, June 22, 2009.

Casino Backers Reprimanded

A Mahoning County judge issued a temporary restraining order against backers of a proposed four-casino plan after two of its petition circulators were seen in a secretly taped video giving voters incorrect information about the measure.

Judge James Evans granted the restraining order to Mahoning County Democratic Party Chair David Betras and Mahoning County Commissioner John McNally who used the video to sue the Ohio Jobs and Growth Committee. The order requires circulators to obey the law but still allows backers of the proposal to collect signatures needed to get the measure on the ballot this fall.

In a two-page order, Evans blocked the committee "from misrepresenting the contents, purpose or effect of the initiative proposing an amendment to the Ohio Constitution to authorize a single casino within each of the cities of Cleveland, Columbus, Cincinnati and Toledo."

For the complete story, please see Reginald Fields, Judge to casino circulators: be truthful; backers say no problem, The Plain Dealer, June 5, 2009.

Many Look for Opportunity at FireKeepers Casino

Like clockwork, the cars roll over the stone parking lot just off Interstate 94 a little before 8 a.m. The drivers waste little time and head into the nondescript building for the first of three shifts at dealer school for FireKeepers Casino.

Two-thousand answered the call for 300 available slots as dealer-school students. They were screened and tested before being invited to attend. They get paid nothing and are expected to be there four hours a day for 12 weeks. In the end, they may or may not be offered a job. The casino says that, altogether, more than 28,000 people have applied for 1,500 full- and part-time jobs that will be filled before opening in early August.

"This is a career opportunity," says Lance Allen, director of table games for the casino. "A lot of people just look at it as a job. But it really is more than a job."

Allen should know. He started out as a dealer 28 years ago and has risen to a key management position for the $300 million casino.

At 47, Gary Smith from Parma was considering going back to school to train for a health-field position. He worked for Libra Industries -- an automotive supplier in Jackson -- for the past five years as a shipping and receiving manager. Like many, he gets no health insurance from his part-time job at a convenience store. If Smith makes it through the next 12 weeks, he'll get the benefits that are so important to him.

"Auto is a dying industry," Smith said. "I want something with long-term potential."

For the complete story, please see Chris Wheelock, What's the Deal? Some see second career as casino dealers, West Michigan Business, May 28, 2009.

FireKeepers Casino Expected to Open in August

"So far I'm getting used to these chips."

Steve Feltner is on his first day of what he hopes will be his new career. He was laid off from his exterminator job and jumped at the chance to become a dealer.

"The way I see it, this job's gonna be here for a really long time," said Feltner. "Plus the bare fact that I absolutely love being around people, I just figured this would be a good career to undertake."

All four hours of the first day and part of the second will be all about the chips.

Cutting, stacking, pushing-- they're the foundation of the job.

Mark Agabashian is pretty good with the chips-- he's been a dealer for 10 years-- but was laid off from Motor City Casino in Detroit last month. Dealer school is a formality for him.

"It's like work, but it's not easy," says Agabashian. "The procedures are really precise."

Both Feltner and Agabashian have easy going, friendly personalities that would seem to make them excellent dealers from a gambler's perspective.

"I like this a lot," Agabashian continues. "It's entertaining. The players are amazing."

They are both after the same thing-- a career at the new Firekeepers Casino just off I-94 in between Marshall and Battle Creek. It's 45 miles South of Lansing-- which is 15 miles closer than Soaring Eagle Casino in Mount Pleasant.

Construction is moving along well and doors are now expected to open in early August.

For the complete story, please see Jason Colthorp, New Casino Opening in August, WILX.com, May 18, 2009.

Greektown Casino Disappointed with Low Bids

Greektown Casino-Hotel will spend more time looking at ways to reorganize its debts rather than selling the property to exit bankruptcy, after multiple bids came in lower than expected, a financial adviser for the gambling hall said Thursday.

Chuck Moore, an adviser from Birmingham-based Conway MacKenzie Inc., which is working on Greektown's bankruptcy, told the Michigan Gaming Control Board at its Thursday meeting that his team would shift focus toward looking at ways the casino can reorganize some $777 million in debt.

"There was disappointment at the values of the bids we've seen so far," Moore said. "Our creditors don't believe they adequately compensate for the performance of the property."

Officials in charge of Greektown's estate have been shopping the property around to potential bidders in a two-pronged approach to getting the casino out of Chapter 11 protection.

For the complete story, please see Nathan Hurst, Greektown Casino rejects low-ball bids, The Detroit News, May 7, 2009.