The deal is expected to close early next year, pending regulator approval. The sale would create the nation's largest gaming company. MGM Mirage owns the MGM Casino in Detroit. Mandalay Resort owns the MotorCity Casino. Michigan law requires each of the three casinos in Detroit to be owned by different parties.
A price tag has not yet been made public for Mandalay's 53.5% stake in the MotorCity casino. Some reports say the majority share of MotorCity could be worth about $500 million. Michigan law gives MGM up to five years to sell one of the casinos after it finalizes the purchase of Mandalay, but MGM told GlobeSt.com a deal would take place well before that deadline.
MotorCity Casino opened in late 1999 in the old Wonder Bread factory on the corner of Grand River and the Lodge freeway. The four-story casino has 70,000 sf of gaming space and plans construct a permanent casino and 400-room hotel adjacent to the existing casino.
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