Tribe Wants Detroit Casino Sale Blocked

DETROIT, Michigan – As reported by the Detroit News: "For eight years, a tiny Upper Peninsula Indian tribe has tied up $1.5 billion in construction on three permanent hotel-casinos in downtown Detroit, claiming in a federal lawsuit that the original bidding process was tainted.

"Now, the 500-member Lac Vieux Desert Band of Lake Superior Chippewa Indians is asking the 6th U.S. Court of Appeals in Cincinnati to block the sale of any Detroit casino until the lawsuit is settled -- a move that threatens to complicate the $7.9 billion purchase by MGM Mirage of the Mandalay Resorts Group.

"In 2002, the appeals court ordered the city and developers not to build permanent casinos while the tribe pressed its case to reopen the bidding.

"…Since MGM Mirage owns MGM Grand Detroit, and Mandalay owns 53.5 percent of MotorCity Casino, one of the two Detroit gaming houses must be sold. Michigan law forbids one entity from owning more than 10 percent of two casinos in Detroit.

"…The Indian tribe claims it was squeezed out of the bidding process for a casino license and now wants a total of $120 million from Detroit's three casinos to drop the suit or have the court order the three existing casino licenses up for new bids.

"The tribe said any change of ownership would cause more complications and delays…"