Greektown Casino Purchased for $1 Billion

The Michigan Gaming Control Board gave the green light to the sale of Greektown Casino on Tuesday. And the venue will be purchased for $1 billion, and many believe that the deal will close on Thursday. The officials announced this move back in November, but people waited patiently for the approval.

According to the agreement, Penn National Gaming will buy the actual casino. They will cough up $300 million for it. Also, VICI Properties Inc. will take the real estate connected to the venue. Aside from this, this company will purchase the hotel as well. In their case, they will give $700 million. Then, Penn will conclude a contract with VICI according to which they will rent the property for the next 15 years.

What’s more, Dan Gilbert was the former owner of this casino. He bought it back in 2013. Prior to his purchase, the property had not been doing well. In point of fact, it went into bankruptcy for two straight years — from 2008 to 2010. There were plans to change the name of the casino to “The Jack” in 2016. But this never came to be.

Last year, it was made public that the casino’s restaurants would undergo a $15 million renovation. This meant that the venue would introduce many things which might appeal to the visitors, including new menu options.

The Competition

According to the published reports, it would seem that Greektown was falling behind its competition. To be specific, they were not able to catch up to Motor City Casino and the MGM Grand Detroit in March 2019. These two operators generated a revenue of $125 million and $157 million respectively. In comparison, Greektown earned $84 million.

Nevertheless, Greektown’s profits increased by about $6 million in 2018 when compared to 2017. At the moment, Penn has not indicated whether they would be making any changes to the venue. But they did confirm that they would employ a new general manager who would be in charge of the property. Lastly, Penn Gaming is in possession of more than 40 casinos in the United States. Among these are The Tropicana and Hollywood Casino.

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