Federal judge may hold up casino license

Tuesday, June 29, 1999 | 11:12 a.m.

DETROIT -- A federal judge indicated Monday he may require the rebidding of one of the three Detroit casino licenses.

U.S. District Judge Gerald Rosen said he may issue an injunction to rebid the Greektown casino license. He held a hearing in a lawsuit filed by entrepreneur Don Barden.

Barden, an unsuccessful casino license bidder, is suing for more than $100 million in damages and to have the entire casino selection process declared illegal.

Two groups, Atwater Entertainment and Greektown casino group, had a preference for casino licenses because they wrote preferences for themselves into the 1996 ballot measure allowing the Detroit casinos.

The Detroit Free Press reported that in choosing the three casino operators, Mayor Dennis Archer said Atwater would have won even without a preference. Atwater is teaming with Circus Circus Enterprises of Las Vegas. MGM Grand of Las Vegas was chosen without any preference. But Archer said Greektown needed its preference.

Rosen said if the Greektown preference was illegal, as Barden claims, he may require rebidding of the license.

Eugene Driker, attorney for the city, said an injunction would be catastrophic for the city because it's depending on $54 million in casino revenue for the budget year starting Thursday.

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