Supplier News
US – Greektown expects to turn a profit in two years
By Phil - 17 February 2014
Greektown Casino saw revenues slide by $31m in 2013 with further losses expected in 2014 in 2014 before eventually turning a profit again in 2015 following a series of renovations funded by new owner Dan Gilbert.
Net revenues for the three months ended December 31, 2013 were $71.5m compared to $76.9m for the same quarter of 2012, a decrease of 7.1 per cent. Net loss for the quarter was $9.7m compared to $9.5m a year ago, inclusive of $36.4m of fourth quarter 2013 income resulting from the reversal of the company’s deferred tax liability associated with the previously-announced restructuring, and the resulting $42.1m impairment of the company’s goodwill.
Mr. Gilbert, who founded Quicken Loans, is looking to invest up to $150m.
Matthew Cullen, CEO of Rock Gaming, said the renovations would simplify the casino’s parking situation as well as including new slots for the gaming floor.
“We are planning to create a more open, spacious and inviting atmosphere as well as enhance our gaming offering, which we believe will enable us to attract new patrons and drive increased customer loyalty,” the operator said.
Mark Dunkeson, President and CEO of Rock Gaming, added: “Under new, local ownership and with a cohesive approach to reinvestment, Greektown’s operational and physical opportunities are substantial. I am proud to be leading the Greektown team through this process and confident in our continued progress.”
The last time Greektown reported a profit was June 2010. It now has just under 25 per cent of the city’s casino market, behind MotorCity Casino Hotel and MGM Grand Detroit.
Gambling revenue fell across the three properties in 2013 by 4.7 per cent to $1.35bn.
