Penn National May Gamble On Greektown Casino In Detroit

Penn National has placed a bid to but the Greektown Casino in Detroit, Michigan. The casino has been openly searching for a buyer as part of the bankruptcy process.

"They are a great company, very, very, well run and they are flush with cash," said gaming equity analyst Joe Fath, Vice President at T. Rowe Price, when speaking about Penn National. That opinion is not one that is shared by others however.

Penn National has signed a deal to operate one of the state owned casinos in Kansas. Then, after coming to the conclusion that they could not compete with a neighboring casino in Oklahoma, the company pulled out of their agreement with Kansas.

"This is a company that has already bailed on a market that could have supported a casino," said observer John Lescro, "Outside of that, anything that can help Greektown survive would be a benefit for the city of Detroit.

Detroit casinos received a boost in the first fiscal quarter this year because they were the host of the NCAA Final Four. Without that boost, they would be experiencing the same financial difficulties that casinos in other states have since the economy fell apart in the US.

May 1, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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