Greektown Casino owner Dan Gilbert, who bought the property last spring, has announced a major renovation of the property starting next summer. Third in size and revenue, the casino, which opened in 2000 generates about 0 million in revenue each year, but any profits go toward operating expenses and debt payments. In corporate filings, Greektown reported a million loss in the third quarter, as total net revenues, including food and beverage and hotel stays, declined 7.5 percent to .4 million from the same quarter a year ago. Through November of this year, revenues from Detroit’s three casinos dropped 4.3 percent compared to the same period last year, based on gaming board reports. Ohio’s new casinos are partly to blame.
Rock Gaming Chief Executive Officer Matt Cullen said Greektown already is profitable from an operational standpoint. “The changes being contemplated are the type of things that will build on the good things about the property and just make them better. The folks at Greektown have not had the ability to put the resources towards making the significant level of improvements that need to be made, and we’re going to do that,” Cullen said.
He noted this summer Greektown still had about $400 million in debt on its books, related to a new valet parking garage, revamped food court and new high-end restaurant. Cullen added Rock Gaming plans to turn Greektown back into a private company next year and refinance much of the casino‘s debt.
Tom Shields, president of Lansing-based Marketing Resource Group, said, “I think everybody has confidence that Gilbert’s organization is going to be able to make some changes there to turn that casino around.”
