Gaming News

Lac Vieux Desert Band to Join Casino Sale

DETROIT, Michigan – (PRESS RELEASE) -- Attorneys for the Lac Vieux Desert Band of Lake Superior Chippewa Indians filed notice today that it will seek to enjoin MGM Grand Detroit from selling its casino franchise. Lac Vieux filed its notice with the Sixth Circuit Court of Appeals in Cincinnati where litigation is pending over whether MGM's Detroit casino franchise should be rebid as the result of an unconstitutional selection process.

In 2002, the Court of Appeals ruled that the process used by the City of Detroit to award casino franchises was unconstitutional. The Court subsequently issued an order enjoining the City and the casino developers, including MGM, from moving forward with plans to build permanent casino facilities. In issuing the injunction, the Court ruled that Lac Vieux is "likely to succeed" in its request for an order to rebid the Detroit casino franchises. Despite the injunction, MGM recently announced plans to sell its Detroit casino franchise by the end of March.

The courts have held that the Detroit casino selection process was illegal. Attorney Conly Schulte of Monteau & Peebles, which represents the Tribe, said, "MGM should not be permitted to sell a casino franchise that it obtained through an illegal selection process."

In April 2004, a federal district court approved Lac Vieux's settlement with owners of MotorCity and Greektown casinos, leaving MGM Grand alone to face a possible court-ordered rebid of its casino development. MGM appealed the settlement, and now both the settlement and the issue of rebidding the casino franchises are pending with the Sixth Circuit Court of Appeals.

A Dec. 20, 2004 order by the Court calls for further briefing in the case. A decision is not expected until later this year.

Lac Vieux Desert Band of Lake Superior Chippewa Indians operates Lac Vieux Desert Resort and Casino in Watersmeet, Mich. The property includes a motel, full-service restaurant, casino, conference facilities and a nine-hole golf course.

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