Brief: Tribe buys out Grand Casinos management pact

Wednesday, Dec. 9, 1998 | 11:46 a.m.

Grand said it will receive full value for all contracted obligations, but declined to place a dollar value on the buyout due to a confidentiality agreement with the tribe.

Grand said the buyout calls for it to get the management fees it would have earned through the term of the original pact. The Mille Lacs Band, which last year terminated a second pact with Grand, will take over operation of its two Minnesota casinos and has the right to continue to use the name "Grand Casino."

Grand continues to manage two tribal casinos in Louisiana and owns three others in Mississippi. As part of a merger agreement, Park Place Entertainment -- the gaming spinoff of Hilton Hotels Corp. -- will acquire Grand's wholly owned resorts.

A publicly traded Grand spinoff called Lakes Gaming will keep the Indian management contracts and about 10 acres of undeveloped land in Las Vegas.

The spinoffs and merger are expected to be completed by the end of the month.

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