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Greektown Casino, Michigan Gaming Control Board agree to resolve 25 outstanding violations

Detroit - The Michigan Gaming Control Board today ordered Greektown Casino, L.L.C., to pay $529,500 in fines by approving an acknowledgement of 25 violations that occurred between late 2010 and 2014 prior to current ownership and management of the casino.

The largest single fine of $150,000 was related to a land swap transaction with Wayne County in 2011.

“Greektown Casino’s current management has stepped up and handled violations that occurred before its tenure,” said Richard Kalm, MGCB executive director. “Under its previous management, Greektown Casino failed to fulfill several licensing, promotional, gaming law and board order requirements. The current casino management team has improved business practices and taken measures to ensure compliance in all aspects of operations.”

The casino’s previous owners, Greektown Superholdings Inc., violated the casino’s licensing requirements in 2011 by paying a $420,000 broker fee to a real estate firm without an MGCB-issued license. An MGCB investigation revealed Wayne County required Greektown Superholdings Inc. pay the county’s broker to handle the land swap although the casino management firm already had paid its own broker’s fees. Greektown failed to report the transaction and the use of a real estate agent without an MGCB license or licensing exemption.

“Greektown Superholdings' payment to the county’s broker not only violates gaming licensing requirements but seems like an unnecessary expense,” Kalm said.

The Michigan Gaming and Revenue Act requires the Detroit casinos to purchase, lease or acquire goods or services covered by state gaming rules only from a licensed supplier. To protect the integrity of gaming, the board considers the suitability of a person or entity as defined in the act and administrative rules when issuing a license. The act and rules direct the board to deny licenses for occurrences of:

  • A criminal record involving gaming, theft, dishonesty, fraud or the integrity of gaming
  • Federal or state of Michigan tax issues
  • The order includes the following case types and fine totals:

  • Instances of minors in the casino and liquor violations ($31,500)
  • Promotional violations ($48,000)
  • Board order violations ($220,000)
  • Licensing requirement violations, including supplier licensing requirements for subcontractors ($180,000)
  • Customer disputes and Disassociated Persons List violations ($50,000)
  • The MGCB may levy an additional $40,000 in fines in 2016 should Greektown Casino, L.L.C., fail to fulfill two stipulations to avoid licensing requirement or patron dispute (ticket in ticket out or TITO) violations in the next 12 months.

    Because Greektown officials admitted to the violations, the MGCB will not require formal administrative hearings and has agreed not to pursue five other cases which occurred under previous management.

    “We delayed some investigations because of other agencies’ requests and issues associated with Greektown’s bankruptcy and transition to new ownership,” Kalm said. “After consulting with current casino management, we agreed to combine the violations into a single acknowledgement.”

    "The Michigan Gaming Control Board shall ensure the conduct of fair and honest gaming to protect the interests of the citizens of the State of Michigan."