Introduction
The MGM Grand Detroit casino is a popular destination for tourists and locals alike, offering a range of gaming options, restaurants, and entertainment. However, many people are curious about the casino’s ownership structure, which can be confusing due to the involvement of different entities and investors.
In this article, we will demystify the ownership structure of MGM Casino in Detroit. We will explore who owns the casino, the evolution of ownership over time, and the key players responsible for its success.
Demystifying the Ownership Structure of MGM Casino in Detroit
MGM Grand Detroit casino is owned by MGM Resorts International, a major player in the gaming industry with properties throughout the United States. However, MGM Resorts International is not the only entity with a stake in the casino.
Other shareholders and investors who hold stakes in the casino include real estate investment trust (REIT) Vici Properties, billionaire investor Icahn Enterprises, and private equity firm Blackstone Group. These entities have a portion of the casino’s ownership, while MGM Resorts International manages the day-to-day operations.
The ownership of the casino has evolved over time, with the involvement of different investors and corporate entities. In 1996, the Ilitch family, known for their ownership of the Detroit Red Wings and Little Caesars pizza, acquired a license to build a casino in the downtown area.
A Closer Look at the MGM Grand Detroit and the Forces Behind It
The development of the MGM Grand Detroit casino was a collaborative effort between the Ilitch family and MGM Resorts International. The Ilitch family provided the land and local connections, while MGM Resorts International provided the gaming expertise and financing.
One of the key players responsible for the success of the casino is Jim Murren, former CEO of MGM Resorts International. Murren was instrumental in the development of the casino, pushing for the company to invest in the Detroit market despite the city’s economic challenges.
Behind the Scenes: Exploring the Business Model and Ownership Structure
MGM Grand Detroit casino has a strong business model, with a focus on both gaming and non-gaming revenue. The casino offers a range of gaming options, including slot machines, table games, and poker. Additionally, the casino has several restaurants and bars, a hotel, and a spa.
Shareholders benefit from the casino’s success through dividends and increased share prices. For example, Vici Properties, which owns the real estate underlying the casino, receives rent from MGM Resorts International. Icahn Enterprises, a major shareholder in MGM Resorts International, holds a stake in the casino through its investment in the company.
The Evolution of MGM Grand Detroit Ownership: A Timeline of Changing Hands
The ownership of MGM Grand Detroit casino has changed several times over the years. In 1997, the Ilitch family partnered with Mandalay Resort Group to develop the casino. MGM Resorts International later acquired Mandalay Resort Group, giving it a majority stake in the casino.
In 2016, MGM Resorts International created a REIT called MGM Growth Properties, which acquired the real estate underlying several of its casinos, including MGM Grand Detroit. Vici Properties, a leading REIT focused on gaming properties, later acquired MGM Growth Properties’ ownership stake in the casino’s real estate.
Who Really Owns MGM Grand Detroit?
The breakdown of MGM Grand Detroit’s ownership is as follows:
- MGM Resorts International holds a 50.1% stake in the casino’s operating company
- Vici Properties owns the real estate underlying the casino and receives rent from MGM Resorts International
- Icahn Enterprises holds a 14.8% stake in MGM Resorts International
- Blackstone Group owns a 4.9% stake in MGM Resorts International
- Other investors and shareholders own the remaining shares
MGM Resorts International manages the day-to-day operations of the casino and is responsible for its success. Vici Properties benefits from the rent it receives from MGM Resorts International, while Icahn Enterprises and Blackstone Group benefit from their investment in MGM Resorts International.
Conclusion
In conclusion, understanding the ownership structure of MGM Grand Detroit casino can be confusing due to the involvement of different entities and investors. However, by exploring the different shareholders and investors who have stakes in the casino, the evolution of ownership over time, and the key players responsible for its success, we hope to have shed some light on this topic.
It is clear that MGM Resorts International is the majority owner and operator of MGM Grand Detroit, but other entities also have stakes in the casino. Shareholders benefit from the casino’s success through dividends and increased share prices, and the casino has a strong business model with a focus on both gaming and non-gaming revenue.