Want more on Midwest casino progress? Go to Minneapolis.
DETROIT-A federal judge has cleared the way for the three casinos in the city to build permanent facilities, which will include hotels. The Sixth Circuit Court of Appeals in Cincinnati dismissed claims against MGM Grand Detroit Casino by the Lac Vieux Desert Band of Lake Superior Chippewa Indians. It also approved a settlement reached earlier between the tribe and Greektown and MotorCity casinos.
The claim was the last hurdle to allowing the three casinos to build permanent facilities. The area casinos have been open and operating since 1998 in "temporary" facilities, none of which include a hotel. Development of the permanent casinos has long been viewed by the city's administration as a key element in the city's redevelopment.
"We know that competition in the casino industry is fierce, and we want them to compete here in the City of Detroit," Mayor Kwame Kipatrick says. "We want itto be a race as to who gets in the ground first. The people that build first also have the best opportunity to capture this casino market, which is one of the best in the nation."
MotorCity Casino and MGM Grand's owner both issued statements welcoming the court's decision. None of them provided exact timelines on possible construction plans, but the Detroit City Council approved on Friday rezonings of Greektown Casino LLC and MotorCity Casino LLC.
Under the settlement, Greektown and MotorCity casinos will pay $39.5 million each to the Lac Vieux Desert Band of Lake Superior Chippewa Indians. A separate out-of-court deal with two former Greektown investors will bring the tribe an additional $15 million for a total of $94 million. The Lac Vieux tribe's main claim was that the city's selection rules gave unfair advantage to Greektown and MotorCity. The tribe sued the three casinos and the city in 1997. It operates its own casino in the Upper Peninsula Village of Watersmeet.
The Ontario government announced in February that it will spend $324 million to expand Casino Windsor, which attracts most of its visitors from the US.
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