The Michigan Gaming Control Board today approved the transfer of ownership of MotorCity Casino to Detroit businesswoman Marian Ilitch.

"I would just like to thank the members of the Gaming Control Board and their staff for all their hard work they put into this process," said Marian Ilitch. "The Board really went the extra mile to thoroughly review this agreement while meeting the deadlines set by the MGM buyout."

The transfer to Ilitch is subject to the conclusion of the buyout of Mandalay Resort Group Inc. by MGM MIRAGE, Inc. MotorCity Casino opened in 1998 and has led the Detroit market in revenue for the past two years.

"I'm excited by the prospect and opportunity of owning and operating MotorCity Casino but I also understand the responsibility of being an economic engine to the community," said Ilitch. "We have the best employees in the business, a wonderful location and offer a great entertainment experience. I'm confident we will continue to thrive."

Ilitch is one of the leading entrepreneurs in the food and entertainment industry and with her husband Mike, jointly owns Little Caesars Enterprises, the Detroit Red Wings NHL hockey team, and Olympia Entertainment.

Ilitch owned a 25 percent interest in MotorCity Casino as a partner in the Atwater Casino Group. Her partners included Detroit businessman Tom Celani who owned 10 percent interest in MotorCity, and Atwater Entertainment Associates, a group of more than 100 local investors combined with 11.5 percent of the casino shares. As investors in the Atwater Casino Group, Ilitch, Celani, and Atwater Entertainment owned a combined 46.5 percent interest in MotorCity Casino while Mandalay owned 53.5 percent.

In March 2005, Ilitch reached two agreements to purchase remaining interests in MotorCity. One agreement was between Ilitch and her local partners, the Atwater Casino Group. Investors of Atwater Entertainment Associates negotiated with Ilitch as a group and overwhelmingly supported the sale of their shares to her. More than 100 investors will gain a significant financial profit as a result of the agreement. The second agreement was reached between Ilitch and MGM MIRAGE to purchase the interest of MotorCity Casino owned by Mandalay.

MGM MIRAGE Inc., which has a pending $7.9 billion buyout of Mandalay, must sell as part of the deal a controlling interest in either MGM Grand Detroit Casino L.L.C. or Mandalay's MotorCity Casino. The deal received approval from the Federal Trade Commission on Feb. 16, 2005.

MGM must sell its interest in one of the two Detroit casinos to get approval from the Michigan Gaming Control Board for the Mandalay buyout. Michigan law prohibits a casino company from owning a controlling interest in two casinos in Detroit. The company can own no more than 10 percent of the second casino.

MotorCity Casino has 2,800 employees and 53 percent were Detroit residents at the time of hiring. The casino paid $55 million in taxes to the city of Detroit last year and $40.9 million in wagering taxes to the state of Michigan. For March of 2005, MotorCity's revenue was $40.3 million, which is 9.9 percent higher than the 2004 figure over the same period.

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