Opening on September 5, 2017, the arena, which cost $862.9 million to construct, replaced Joe Louis Arena and The Palace of Auburn Hills as the home of the Detroit Red Wings of the National Hockey League (NHL) and the Detroit Pistons of the National Basketball Association (NBA), respectively.

[18] The eight-story arena is built as a bowl, with its floor 40 feet (12 m) below street level with seating capacities of 19,515 for ice hockey and 20,332 for basketball.

[26][27] An amplified recording of the horn was played over the sound system instead, in a move that received mixed reviews from Red Wings fans.

[28] The new arena would be owned by the city's Downtown Development Authority (DDA) and its land would be leased to Olympia Entertainment, a subsidiary of the Red Wings' parent company, Ilitch Holdings, rent free for a long term.

[5][29] Sales of game tickets, parking, concessions, souvenirs, and any potential naming rights deals would not be subject to revenue sharing with the City of Detroit as they were with Joe Louis Arena.

[30] Olympia Entertainment officially announced in December 2012 its intention to develop a new district in downtown Detroit composed of offices, residential facilities, and "a new state-of-the-art, multi-purpose events center", with an estimated cost of $650 million.

The district, which would complement the QLINE streetcar, was primarily built on vacant land near the Cass Corridor along Woodward Avenue, and would incorporate five distinct neighborhoods with new residential and apartment units and European-influenced designs.

Olympia Development would fund the refurbishment of public infrastructure around the arena district, such as street lighting, sidewalks, and paving.

[35] Wilson also stated its commitment to continue hosting the annual collegiate Great Lakes Invitational at the arena, provided the universities involved maintained their desire to participate.

The sale of the Joe Louis Arena site came as part of a bankruptcy settlement between the Financial Guaranty Insurance Company and the city of Detroit.

[15][37] Mass excavation at the arena site began on April 24, 2015, a few days after Detroit City Council approved a zoning change, allowing vertical construction to officially commence.

[38][39][40] The Detroit Historic District Commission approved the demolition of the Park Avenue Hotel on June 10, 2015, to make room for what will be the arena's loading dock.

[44][45][46][47] On August 30, 2015, Olympia Entertainment announced that an estimated 488,000 cubic yards (373,000 m3) of soil had been excavated in recent months for the below-grade bowl, and hundreds of deep pier foundations were being drilled and filled with concrete through September.

[51] In late October 2016, it was reported that the Pistons were considering a move from The Palace of Auburn Hills to Little Caesars Arena as soon as the 2017–18 season, pending city and league approval.

[70] In the inaugural season of Little Caesars Arena, concerns were raised over diminished attendance of Red Wings and Pistons games.

During the Red Wings' first regular season game at the arena, the sight of a half empty lower bowl was noticeable due to it being nationally televised.

[71][72] When asked about this, Olympia CEO Tom Wilson explained that many fans went to the concourse to check out the arena, noting that the same thing happened during the first event.

[73] In early November 2017, the team announced that all of the home games played at that point were sellouts despite the sight of empty seats.

[78][79] As of 2025[update], beyond a new Little Caesars world headquarters across from Comerica Park,[80] the Wayne State University Mike Ilitch School of Business neighboring Little Caesars Arena (both of which have ties to the Ilitch family),[81] and an office building,[82] little of the promised redevelopment tied to the arena has materialized.

[10] In June 2017, a lawsuit was filed by Robert Davis and city clerk candidate D. Etta Wilcoxon, seeking to prohibit the use of school property tax revenue to fund Little Caesars Arena and the new Pistons headquarters without a public vote.

The money had originally been approved by voters only for use by Detroit Public Schools Community District to cover operational expenses.

[85] District Judge Mark A. Goldsmith dismissed much of the suit, ruling that the plaintiffs lacked standing to sue over the issue.

The judge did, however, allow an unrelated count, alleging violations of the Equal Protection Clause by the DPSCD against Davis, to move forward.

[94] Following Howe's death on June 10, 2016, an online petition began to circulate requesting that Little Caesars Arena be renamed in honor of the former Red Wings player.

[97] The 2020 NCAA Men's Frozen Four was scheduled to be held at Little Caesars Arena, hosted by Michigan State University.

[114] On July 17, 2019, the Michigan State Spartans and the Oakland Golden Grizzlies announced a six-year deal that extended their series.

[131][132] In its first WWE event, Little Caesars Arena hosted the pay-per-view Hell in a Cell on October 8, 2017,[133][134] followed by its first Raw broadcast on March 12, 2018.

[142] All Elite Wrestling (AEW) hosted its first event at Little Caesars Arena on June 29, 2022, including a live broadcast of Dynamite, featuring the second Blood & Guts special and match, and tapings of Rampage and Dark: Elevation.