The Majestic Star Casino, LLC
Encyclopedia
The Majestic Star Casino, LLC is a gaming holding company founded in Gary, Indiana
by Don H. Barden
. Now based in Las Vegas, Nevada
, it is the largest black-owned casino operator in the United States and the first and only black-owned casino in Las Vegas
, Nevada
.
As of the end of 2005, the company had over 4,000 employees.
Started operation in Gary on June 7, 1996.
In December 2001, Majestic Star made its first expansion beyond Gary, acquiring three Fitzgeralds casinos from bankrupt Fitzgeralds Gaming for $149 million, in Las Vegas, Black Hawk, Colorado
, and Tunica, Mississippi
. Chief operating officer Michael Kelly, a former Fitzgeralds executive, engineered the deal.
In April 2005, Majestic Star was selected to operate the casino at the French Lick Resort
in French Lick, Indiana
, being developed by a partnership of Lauth Property Group and the Cook Group
. However, the Cook-Lauth partnership eventually decided to form its own casino management team, and Majestic's involvement ended amiably in September of that year.
After Barden led an effort to legalize gambling in Pennsylvania
, Majestic Star was awarded the only gaming license for Pittsburgh, beating out competing bids from Harrah's and Isle of Capri
. Construction began in December 2007 on the $450 million riverfront Majestic Star Casino, which was projected to double the company's yearly revenues to over $1 billion. However, after defaulting on a $200 million bridge loan and failing to pay contractors, Majestic had to hand control in August 2008 to a group led by JMB Realty
chairman Neil Bluhm
, lead investor in the SugarHouse Casino
in Philadelphia, who bought 75% of the project, and renamed it as the Rivers Casino
. Barden kept his remaining stake in the project outside of the Majestic Star umbrella.
In November 2009, Majestic Star filed for bankruptcy, listing $406 million in assets against $750 million in liabilities. The company cited the recession, increased competition from nearby properties, and a new smoking ban as reasons. In December 2010, Majestic sued Barden, claiming that he changed the company's tax status without notice, costing over $2 million in additional tax liabilities. The company's reorganization plan, filed the following month, would end Barden's ownership interest, while leaving other executives in place.
Gary, Indiana
Gary is a city in Lake County, Indiana, United States. The city is in the southeastern portion of the Chicago metropolitan area and is 25 miles from downtown Chicago. The population is 80,294 at the 2010 census, making it the seventh-largest city in the state. It borders Lake Michigan and is known...
by Don H. Barden
Don H. Barden
Donald Hamilton Barden was an American casino executive.Barden was the Manager, Chairman, President and Chief Executive Officer of The Majestic Star Casino, LLC since its formation, with responsibility for key policy making functions...
. Now based in Las Vegas, Nevada
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
, it is the largest black-owned casino operator in the United States and the first and only black-owned casino in Las Vegas
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
.
As of the end of 2005, the company had over 4,000 employees.
History
The company was formed on December 8, 1993.Started operation in Gary on June 7, 1996.
In December 2001, Majestic Star made its first expansion beyond Gary, acquiring three Fitzgeralds casinos from bankrupt Fitzgeralds Gaming for $149 million, in Las Vegas, Black Hawk, Colorado
Black Hawk, Colorado
The historic City of Black Hawk is a Home Rule Municipality located in Gilpin County, Colorado, United States. The city population was 118 at U.S. Census 2000, making Black Hawk the least populous city in Colorado...
, and Tunica, Mississippi
Tunica, Mississippi
Tunica is a town in Tunica County, Mississippi, United States, located near the Mississippi River. Until the early 1990s the town was one of the most impoverished places in the United States, semi-famous for the particularly deprived neighbourhood known as "Sugar Ditch Alley", named for the open...
. Chief operating officer Michael Kelly, a former Fitzgeralds executive, engineered the deal.
In April 2005, Majestic Star was selected to operate the casino at the French Lick Resort
French Lick Resort Casino
French Lick Resort is a resort complex located in the towns of West Baden and French Lick, Indiana. The complex includes two historic resort spa hotels, stables, a casino and three golf courses, all part of a $500 million restoration and development project....
in French Lick, Indiana
French Lick, Indiana
French Lick is a town in French Lick Township, Orange County, Indiana, United States. The population was 1,807 at the 2010 census. In early 2006 the French Lick Resort Casino, the state's tenth casino in the modern legalized era, opened drawing national attention to the small town.- History :French...
, being developed by a partnership of Lauth Property Group and the Cook Group
Cook Group
Cook Group Incorporated is an American privately held company based in Bloomington, Indiana, and primarily involved in manufacturing of medical devices. It was ranked #324 in Forbes' 2008 America's Largest Private Companies. It has three main divisions: Cook Medical, Allied Manufacturing, and...
. However, the Cook-Lauth partnership eventually decided to form its own casino management team, and Majestic's involvement ended amiably in September of that year.
After Barden led an effort to legalize gambling in Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, Majestic Star was awarded the only gaming license for Pittsburgh, beating out competing bids from Harrah's and Isle of Capri
Isle of Capri Casinos
Isle of Capri Casinos, Inc. is a gaming company headquartered in Creve Coeur, Missouri which operates casinos and associated entertainment and lodging facilities in the United States and abroad....
. Construction began in December 2007 on the $450 million riverfront Majestic Star Casino, which was projected to double the company's yearly revenues to over $1 billion. However, after defaulting on a $200 million bridge loan and failing to pay contractors, Majestic had to hand control in August 2008 to a group led by JMB Realty
JMB Realty
JMB Realty Corporation is a real estate investment company based in Chicago that at one time was one of the largest property developers in the United States. The company was founded as Robert Judelson & Co. in 1968...
chairman Neil Bluhm
Neil Bluhm
-Biography:Neil Bluhm was born in 1938. His father left home when he was 13, and his mother worked as a bookkeeper. He graduated from the University of Illinois at Urbana and received a Doctor of Jurisprudence from Northwestern University....
, lead investor in the SugarHouse Casino
SugarHouse Casino
SugarHouse Casino is a casino entertainment development along the Delaware River in Philadelphia, Pennsylvania's Fishtown neighborhood. It was one of five stand-alone casinos awarded a gaming license on December 20, 2006 by the Pennsylvania Gaming Control Board...
in Philadelphia, who bought 75% of the project, and renamed it as the Rivers Casino
Rivers Casino
The Rivers Casino is a casino in Pittsburgh, Pennsylvania, USA. It is owned by Holdings Acquisition Co. L.P., a joint venture of Walton Street Capital LLC and High Pitt Gaming LP...
. Barden kept his remaining stake in the project outside of the Majestic Star umbrella.
In November 2009, Majestic Star filed for bankruptcy, listing $406 million in assets against $750 million in liabilities. The company cited the recession, increased competition from nearby properties, and a new smoking ban as reasons. In December 2010, Majestic sued Barden, claiming that he changed the company's tax status without notice, costing over $2 million in additional tax liabilities. The company's reorganization plan, filed the following month, would end Barden's ownership interest, while leaving other executives in place.
Operations
- Barden Development, Inc.
- The Majestic Star Casino, LLC
- Majestic Investor Holdings, LLC
- Majestic StarMajestic Star CasinoMajestic Star Casino is one of two casino gaming boats on Lake Michigan in Gary, Indiana's Buffington Harbor. It is owned by Don Barden's Majestic Star Holdings....
riverboat- Majestic Star II riverboat (formerly Trump Casino)
- Barden Colorado
- Fitzgeralds Black Hawk
- Barden Mississippi
- Fitzgeralds Tunica
- Majestic Star
- Majestic Investor Capital
- Majestic Investor Holdings, LLC
- Barden Nevada Gaming, LLC
- Fitzgeralds Las Vegas (managed by The Majestic Star Casino, LLC)
- The Majestic Star Casino, LLC
Sources
- Corporate profile
- Las Vegas Review-JournalLas Vegas Review-JournalThe Las Vegas Review-Journal is published in Las Vegas, Nevada, United States. It is the largest circulating daily newspaper in Nevada, and one of two daily newspapers in Las Vegas . It is the flagship publication of Stephens Media LLC...