Three interested in buying out troubled Greektown Casino investors

Tuesday, April 18, 2000 | 9:05 a.m.

MGM Grand, Harrah's Entertainment and Millennium Management Group want to buy the share in Greektown Casino now held by businessmen Dimitrios Papas, Ted Gatzaros and their wives, The Detroit News and the Detroit Free Press reported Tuesday, citing unnamed sources.

MGM Grand owns 97 percent of one of the two Detroit casinos already operating, Harrah's operates casinos in 10 states and Australia, and Millennium Management is a privately held Las Vegas company hired to manage Greektown.

It is unclear if a purchase by MGM Grand would be allowed because state law prohibits one entity from owning or operating two casinos.

Papas and Gatzaros are under pressure to sell because their business background included delinquent taxes and defaulted loans. If they don't sell their shares, they could be found unsuitable by the Michigan Gaming Control Board and allowed to recoup only what they originally invested. If they sell now, they reportedly could get as much as $250 million for the 40 percent stake.

The gaming board last month agreed to postpone licensing hearings for Greektown until June 2, after the casino's attorneys said they needed more time to work out the sale of Papas' and Gatzaros' shares. The board had set a Monday deadline for a progress report.

Greektown Casino officials now must present completed sale documents to the board by May 1. The gaming board is slated to vote May 16 on whether to approve the sale.

The Sault Ste. Marie Chippewa tribe owns 50 percent of Greektown Casino. The remaining 10 percent is owned by local investors.

The temporary casino is nearly finished.