| Type | Private |
|---|---|
| Industry | Gambling |
| Founded | 1993 |
| Headquarters | Las Vegas, Nevada |
| Key people | Don H. Barden, Founder |
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.
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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, and Tunica, Mississippi.[1] Chief operating officer Michael Kelly, a former Fitzgeralds executive, engineered the deal.[2]
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.[3] 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.[4]
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.[5] 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.[5] 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.[6][7] Barden kept his remaining stake in the project outside of the Majestic Star umbrella.[8]
In November 2009, Majestic Star filed for bankruptcy, listing $406 million in assets against $750 million in liabilities.[8] The company cited the recession, increased competition from nearby properties, and a new smoking ban as reasons.[9] 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.[10] The company's reorganization plan, filed the following month, would end Barden's ownership interest, while leaving other executives in place.[11]