Mayor presses Greektown Casino to increase minority stake

Tuesday, July 11, 2000 | 9:50 a.m.

That could give the Greektown Casino the largest share of local minority owners of Detroit's three casinos.

The Greektown Casino has been under pressure from Mayor Dennis Archer to increase the local minority stake in its ownership.

Tribe spokesman John Hatch said it is willing to sell about 10 percent of the casino's ownership to local minorities. The tribe controls 90 percent of the casino.

He said the tribe will do so as long as former co-owners Ted and Maria Gatzaros and Jim and Viola Papas do not repurchase it. The Papases and Gatzaroses are being forced to divest because of problems found in their backgrounds during state-mandated investigations.

"We have been and remain supportive of Detroit ownership," said Hatch.

Local and minority investors now have a 7 percent stake in the casino. That was expected to increase to 10 percent through transactions to be discussed at Tuesday's meeting of the Michigan Gaming Control Board, the Detroit Free Press said.

Local minority investors own 3 percent of the MGM Grand Detroit Casino and 11.5 percent of MotorCity Casino.

"The mayor has never abandoned his desire to use every opportunity to increase the local stake," said mayoral spokesman Greg Bowens.

The tribe's bid to buy out its Greektown partners also will be considered at the hearing.

It has been widely reported that a group of black local investors owned 10 percent of the Greektown Casino.

But investor Chris Jackson said Monday that 3 percent of that was in the form of options to purchase shares.

If approved, Greektown Casino this summer will begin hiring the first of more than 2,000 employees, spokesman Roger Martin said earlier. The casino is to feature 2,500 slot machines and 96 table games in a new, 75,000-square-foot building in the Greektown entertainment district.