Gaming News

Sands Faces Competition in Detroit

DETROIT, Michigan – As reported by the Detroit News: "The Las Vegas Sands Corp. is likely to face stiff competition in any attempt to purchase the MGM Grand Detroit Casino and build a new casino, hotel and convention center in Detroit.

"Howard Hughey, spokesman for Detroit Mayor Kwame Kilpatrick, said the city is looking into 'another proposal' to expand Cobo Center, which is considered undersized to host the annual North American International Auto Show. Hughey declined to name the other party.

"…And with the trend toward consolidation in the casino industry, other major players are likely to compete with Las Vegas Sands to purchase the MGM Grand Detroit, gambling industry analysts said.

"Either MGM Grand Detroit or the MotorCity Casino must be sold before Las Vegas-based MGM Mirage can finalize its purchase of the Mandalay Resort Group. Mandalay owns 53.5 percent of MotorCity Casino in Detroit. State law bars a company from owning more than 10 percent of two Detroit casinos.

"…Sands President and Chief Operating Officer William P. Weidner visited Detroit this week and met with government officials, union leaders and finance experts to discuss building a new hotel-casino and convention center downtown.

"…Analysts say there are several large casino operations that may be looking to expand.

"The Boyd Gaming Corp. owns 19 casinos in six states, including such properties as Stardust Resort and Casino and the Barbary Coast Hotel and Casino.

"…Other possible suitors include Stephen A. Wynn, who sold Mirage Resorts to MGM in 2000 for $6.4 billion, the largest casino transaction in history…"

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