The Michigan gambling regulators have approved the sale of Dan Gilbert’ Greektown casino to Penn National. The Greektown casino is being jointly purchased by the national gaming giant Penn National and Vici properties.
The sale was approved after the four members of the Michigan Gaming Control Board voted in favor of the deal. The deal will be made in cash and will take place on Thursday.
Penn National Gaming CEO Timothy Wilmott said: “This is the final step in the approval process. We’ve already obtained approvals from the city of Detroit and also the Federal Trade Commission.”
Earlier in January this year, Penn National Gaming and Vici properties completed a previously announced $376m acquisition of Louisiana Margaritaville Resort Casino.
According to the Greektown casino deal, Penn National will take charge of the operations of Greektown Casino-Hotel for $300 million. VICI will purchase the casino property’s real estate for $700 million and will lease it to a Penn National subsidiary.
The Greektown casino had been incurring significant losses, and it is reported that the casino carries debts to the tune of $400 million.
However, it is only after Motor City Casino Hotel and market leader MGM Grand Detroit in terms of revenue in Detroit.
“The fact that we’re the smallest casino of the three, it certainly gives us opportunities for improvement,” Wilmott said.
“We want to learn a little about the business as we work with team members there and understand what the customers are looking for in additional amenities before we start talking about any improvements,” he added.