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Regulators Eye Fitzgeralds Deal

CARSON CITY, Nevada – Oct. 17, 2001 --Nevada gaming regulators are scheduled to hold a special meeting today in Carson City to consider the announced $149 million cash purchase of Fitzgeralds casinos.

Detroit businessman Don Barden and his Majestic Investor LLC agreed in December to buy Fitzgeralds' 650-room downtown Las Vegas property, as well as Fitzgeralds casinos in Mississippi and Colorado.

Barden is slated to appear before a morning meeting of the Nevada Gaming Control Board, which will decide whether to recommend licensing for Barden and his company, which owns the Majestic Star riverboat casino in Gary, Ind. He would become Nevada's only black casino owner.

Barden made his fortune in construction and real estate, then landed Detroit's first cable TV contract. He's a high-stakes blackjack player who frequently visits Las Vegas, and made a failed bid for a city issued gaming license in Detroit.

Barden didn't return Tuesday phone messages seeking comment.

Gaming Control Board Chairman Dennis Neilander said financing needs prompted today's meeting.

"They need to go into the marketplace and raise some capital to make this purchase, so we scheduled a special meeting to give them time to do that," Neilander said.

The Nevada Gaming Commission is set to consider the control board's recommendation at its Thursday meeting.

Frank Schreck, Barden's Nevada gaming lawyer, said that fallout from the Sept. 11 suicide hijackings hampered efforts to put the deal's documents together in time for a control board meeting scheduled earlier this month.

"A lot of the Wall Street people were obviously affected," Schreck said, saying he anticipates no problems at today's hearing.

"There are no issues," he said. "I think everything is fine."

Mississippi regulators approved Barden's application to acquire the Fitzgeralds casino in Tunica, Miss., on Monday by a 3-0 vote without any issues of controversy.

Colorado regulators are set Thursday to consider Barden's purchase of Fitzgeralds' Black Hawk, Colorado, casino.

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