Little Caesars Founders Launch Ilitch Gaming to Expand Casino Portfolio

The Ilitch family, founders of Little Caesars, has established Ilitch Gaming to manage its casino holdings and expand its gaming portfolio, according to company announcements. The new entity will oversee the acquisition of the Scarlet Pearl Casino Resort in Mississippi and the full purchase of the Ocean Casino Resort in Atlantic City.

What assets are included in Ilitch Gaming?

Ilitch Gaming will integrate the MotorCity Casino Hotel in Detroit into its new division. The company has also agreed to acquire the Scarlet Pearl Casino Resort in Mississippi.

Additionally, the family is purchasing the remaining 50% stake in the Ocean Casino Resort from Luxor Capital. This transaction will give the Ilitch family full ownership of the Atlantic City property.

Did You Know? The Ocean Casino Resort in Atlantic City was originally opened as Revel with a construction cost of approximately $2.4 billion before undergoing several financial restructurings.

Who is leading the new gaming division?

Chris Ilitch, son of founders Marian Ilitch and the late Mike Ilitch, will serve as president of Ilitch Gaming. He stated that the vision of Marian Ilitch for the MotorCity Casino Hotel and their success in Detroit over nearly 30 years inspired the move.

Ilitch described the formation of the company as a new chapter in the evolution of the family’s gaming and hospitality business. He added that the company remains committed to responsible gaming and acting as a positive economic force in its operating communities.

What is the history of the Ilitch family’s casino investments?

The family developed MotorCity through a $525 million investment partnership with the Las Vegas-based Mandalay Resort Group. In 2005, the Ilitch family acquired a 75% stake in Mandalay Bay after MGM Resorts acquired Mandalay and city authorities required MGM to divest the interest due to antitrust laws.

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The family entered the Atlantic City market in 2021 with a $175 million investment for a 50% share of the Ocean Casino Resort. Since that investment, the resort has become one of the most successful casino resorts in the city.

Expert Insight: Samantha Carter notes that transitioning from partial partnerships to full ownership, as seen with the Ocean Casino Resort, suggests a strategic shift toward total operational control. This move, combined with the Mississippi expansion, indicates a goal to diversify geographic risk across multiple state gaming markets.

What happens next for the acquisitions?

The establishment of Ilitch Gaming and the two pending acquisitions are subject to approval from regulatory authorities. Financial terms for these transactions have not been disclosed.

Future growth may depend on these regulatory outcomes. The company could potentially seek further hospitality assets as it integrates its current portfolio under the new corporate structure.

Frequently Asked Questions

What is Ilitch Gaming?
It is a new company created by the founders of Little Caesars to oversee their portfolio of casinos and future growth initiatives in the gaming sector.

Which properties are part of this expansion?
The portfolio includes the MotorCity Casino Hotel in Detroit, the Scarlet Pearl Casino Resort in Mississippi, and the Ocean Casino Resort in Atlantic City.

What other businesses does the Ilitch family own?
Beyond gaming and Little Caesars, the family owns the Detroit Tigers baseball team and the Detroit Red Wings hockey team.

Do you think consolidating gaming assets into a single company helps a brand grow faster in different states?