Michigan gaming regulators have ordered the Greektown Casino Hotel in Detroit to pay about $530,000 in fines for violations by the property’s previous owner.
The Michigan Gaming Control Board (MGCB) announced Tuesday that the casino’s previous owners, GreektownSuperholdingsInc, has 25 violations that occurred between late 2010 and 2014, prior to the purchase of the property by Dan Gilbert‘s Rock Gaming.
Other violations include liquor infractions, minors being allowed in the casino and regulatory no-no’s involving real estate transactions, customer disputes and supplier licensing.
The largest single fine of $150,000 is for failing to report a $420,000 broker fee to Charlie J. Williams, a former Wayne County deputy executive. Williams also lacked the required license from the MGCB to be involved in the transaction.
“GreektownSuperholding’s payment to the county’s broker not only violates gaming licensing requirements but seems like an unnecessary expense,” Richard Kalm, MGCB executive director, said in a statement.
“Greektown Casino’s current management has stepped up and handled violations that occurred before its tenure,” said Kalm. “Under its previous management, Greektown Casino failed to fulfill several licensing, promotional, gaming law and board order requirements. The current casino management team has improved business practices and taken measures to ensure compliance in all aspects of operations.”
The MGCB may charge an additional $40,000 in 2016 should Greektown Casino fail to fulfill two conditions to avoid violations of licensing requirements or patron dispute protocols in the next 12 months.
The gaming board said that due to Greektownofficials’ acknowledgement of the violations, the board will not require formal administrative hearings and will not pursue five other cases that happened under the previous management.
“While none of the violations occurred under our ownership and management, we have taken responsibility as the casino licensee,” Matt Cullen, CEO of Rock Gaming, said in a statement.
The board also released revenues for Detroit’s three casinos, which saw MGM decline 7.7% year-on-year to $43.6 million, Greektown dip 2.6% to $26.8 million and MotorCity slip 2.2% to $37.1 million.
