Gaming briefs for March 16, 2005

Wednesday, March 16, 2005 | 11:09 a.m.

Ilitch, Karmanos make rival bids for MotorCity Casino

DETROIT -- Two powerful Detroit business families are competing for control of the MotorCity Casino, which is expected to be sold as part of the $7.9 billion merger of MGM Mirage and Mandalay Resort Group.

Marian Ilitch, whose family owns the Detroit Red Wings, the Detroit Tigers and the Little Caesars pizza chain, has offered Mandalay $525 million for its 53.3 percent stake in MotorCity. Ilitch already owns 25 percent of MotorCity Casino, and her spokesman, Tom Shields, said she has signed a deal to buy out the 21.5 percent stake held by other minority investors.

On Tuesday, Peter Karmanos Jr., chairman and chief executive of Detroit-based Compuware Corp. and owner of the NHL's Carolina Hurricanes, and his partner entered a $563 million bid for the Mandalay stake.

Any sale would have to be approved by the Michigan Gaming Control Board. A sale to Ilitch likely could be approved quickly because she already is licensed by the board. Karmanos is not licensed, and overcoming that hurdle in the past has taken six to 18 months, board chairman Dan Gustafson said.

February casino revenue flat

NEW ORLEANS -- Racetrack casinos took in more money from gamblers while riverboats won less as Louisiana's state-licensed gambling halls saw their overall take in February remain virtually static from a year ago.

The state's 14 riverboat casinos, the downtown New Orleans casino and the three slot-machine casinos at race tracks took in $190.1 million last month, compared with $189.7 million in February 2004, state police reported Tuesday.

There was some shifting among the casino segments: the casinos at Delta Downs, Evangeline Downs and Louisiana Downs won $28.2 million in February, compared with $23.1 million a year ago. On the other hand, the riverboats saw their winnings fall to $134.5 million from $140.1 million in February 2004.

Harrah's New Orleans Casino won $27.4 million in February, compared with $26.7 million in February 2004.

Casino to open on May 26

BATON ROUGE, La. -- Pinnacle Entertainment Inc. will open its new $365 million casino and hotel in Lake Charles over Memorial Day weekend, a company spokeswoman said Tuesday.

The company made a report to the Gaming Control Board Tuesday on the progress of the L'Auberge du Lac Hotel & Casino and received a 32-day extension of previous schedules because heavy rains have impeded construction. Las Vegas-based Pinnacle is using the state's 15th and final riverboat casino license, which says the facility must be open by September.

Kerry Andersen, spokeswoman for the casino, said after the meeting that the casino and hotel will be open for business May 26.

The complex will include a 26-story hotel with 746 rooms, an 18-hole golf course, four restaurants and a spa.

House approves more electronic gaming at track

LITTLE ROCK -- The Arkansas House of Representatives approved a measure Tuesday to allow expanded electronic gambling at the Oaklawn Park thoroughbred race track in Hot Springs and Southland Greyhound Park at West Memphis.

The bill was approved by the Senate last week and now heads to Gov. Mike Huckabee's desk. The governor has been critical of previous gambling measures, but has not stated his position on this one.

"The governor is out of town and won't say anything about it until he gets back tomorrow," Huckabee spokesman Jim Harris said Tuesday.

The House approved the bill on a 57-38 vote after an impassioned speech by Rep. Otis Davis, D-Earle.