From the Freep:
Pair betting on a huge payoff from casinos
Ilitch, Malik raise stakes in Indian gaming
November 25, 2007
BY TODD SPANGLER
FREE PRESS WASHINGTON STAFF
WASHINGTON — Marian Ilitch and Michael Malik are spending big money to navigate political hurdles for their plans for American Indian casinos on both coasts and in Michigan.
Ilitch is one of Michigan’s most powerful and wealthy women as owner of the MotorCity Casino and co-owner of the Detroit Red Wings with her husband, Mike, who also owns the Detroit Tigers. Malik is a big-time real estate developer, casino entrepreneur and, in at least a couple of ventures, Marian Ilitch’s partner.
Together, they have spent more than $1 million on lobbyists for their casino proposals and made more than $400,000 in political contributions during the last five years.
Money has gone to Northeastern Democrats, West Coast Republicans and many key races and causes in between. A few months after a fund-raiser for Sen. Carl Levin early this year, the Detroit Democrat agreed to support a casino project in Port Huron, despite opposition from some city officials and its congressional delegation.
So far, the investments have not led to approvals for the casino proposals, but the potential payoff is enormous.
“It could mean as much as $100- to $200 million a year for the Ilitches. … So it’s certainly worth their while,” said Roger Gros, publisher of Global Gaming Business, a trade magazine. Whatever they’re spending, he added, “is peanuts compared to what they could take in.”
Their bets are still long shots, having run into a stretch of bad luck. In California, where Ilitch and Malik are working with two tribes for a casino in Barstow, on the road from Los Angeles to Las Vegas, the legislature let a compact expire.
In New York, where they are working with the Shinnecock Indian Nation, a federal judge has ruled against the tribe’s land claim in Southampton.
Last week, a House committee abruptly delayed a hearing on the plan for an Indian casino in Port Huron. Unlike the other proposals, Malik and the Bay Mills tribe from the eastern Upper Peninsula are working without Ilitch. Though it has her tacit support, she can’t be directly involved because of her casino ownership in Detroit.
Tom Shields, a spokesman for Ilitch and Malik, said the proposals all are in play.
“You can’t get into this thing unless you’re going to be in it for the long haul,” Shields said. “If you are successful, obviously, the investment pays off.”
The first article, “Spill-Free Gaming,” demonstrated that the operation of the Foxwoods and Mohegan Sun casinos had no adverse effect on local crime rates. A second article, “The State of Play in New England Casino Gaming,” argues that the enormous revenues generated by gaming Connecticut means that legalized gambling in Rhode Island and Massachusetts is inevitable. Another article, “Got Game?” demonstrated that these two casinos contribute $430 million a year to the Conn. general fund.
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