Report: Two outside firms likely to buy Greektown shares

Tuesday, March 21, 2000 | 4:51 a.m.

The report, titled "Who Will Win Greektown In Detroit?", also mentioned the Sault Ste. Marie Chippewa Tribe, which owns half of Greektown, as a potential buyer for the 40-percent stake because it has the right to match other offers.

The report written by two analysts with Lehman Brothers highlights the speculation about the future course for Detroit's last casino license.

Investors Ted and Maria Gatzaros and Dimitrios and Viola Papas could make up to $200 million by selling their shares before a public hearing on their license application, the report said. State regulators plan to set a date for that hearing on March 28.

The investors, who were instrumental in legalizing casino gambling in Detroit, have a history of business dealings that would make it difficult to obtain a casino license, The Detroit News reported in its Tuesday editions.

The report said having an outside firm buying the shares is preferable because the tribe, which owns five casinos, has not "faced the level of competition as in other major gaming epicenters."

"I don't ever remember gambling in a Lehman Brothers casino," said tribe spokesman John Hatch.

The report also predicted that Greektown would rank third in revenues of $300 million a year, compared to $350 million for MGM Grand Detroit and $325 million for MotorCity Casino.

All three preferred keeping the temporary casinos open longer than four years, according to the report.

MGM Grand Detroit opened in July, and the MotorCity Casino opened in December.

The Michigan Gaming Control Board had planned to conclude its 20-month investigation into Greektown Casino investors by the end of this month, with a public hearing to follow in March. So the earliest the Greektown group's temporary casino could open is in April, though delays caused by negotiations would push opening day back even further.