LV companies said to be eyeing Greektown stake

Friday, Jan. 14, 2000 | 10:58 a.m.

THE ASSOCIATED PRESS

DETROIT -- Four minority investors are trying to sell their stake in the yet-to-open Greektown Casino in Detroit because of troubles getting licensed by Michigan regulators, a newspaper reported.

The Detroit News reported today that Ted and Maria Gatzaros and Dimitrios and Viola Papas, leaders in bringing casino gaming to Detroit, are looking to sell their 40 percent stake. Citing unnamed sources close to the negotiations, the News said the sale was being considered because the four have a history of business dealings that would make it difficult for them to be licensed by the Michigan Gaming Control Board.

A spokesman for the casino declined comment, but expressed confidence all owners of the $150 million casino would be able to gain licensing. A control board hearing is set for March, meaning the casino could open no earlier than April.

The casino is the only one of the three Detroit casinos without Las Vegas ownership. MGM Grand opened its casino in July, and MotorCity casino, owned partially by Mandalay Resort Group, opened in December. Greektown is drawing interest from a number of Las Vegas companies, including Harrah's Entertainment and Park Place Entertainment, the News said.

The 40 percent stake on the block carries a market value of anywhere from $70 million to $200 million, experts say.

The largest shareholder in Greektown is the Chippewa Tribe of Sault Ste. Marie, Mich., with a 50 percent stake. The tribe has the right of first refusal on any sale, and has given no indication it wants to sell its stake.

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