MGM Mirage has decided on March 14th, 2010 that they will sell their 50% stake of the Borgata Hotel Casino and Spa. Gambling regulators in New Jersey requested that MGM Mirage cut ties with Pansy Ho, the daughter of Asian gambling tycoon Stanley Ho.
MGM Mirage has collaborated with Pansy Ho on several casino projects and instead of losing a gaming partner, they chose to severe ties with Atlantic City. MGM's decision to sell their share of the Borgata Casino deals the Atlantic City casino industry another sever blow. Already, AC's casino industry is having a hard time competing in the northeastern US gaming market.
The economic recession has paralyzed the AC gaming industry and out-of-state competition is making it difficult to lure players back to Atlantic City. Casinos in Pennsylvania had bigger slot revenue in December 2009 compared with AC casinos for the first time ever.
Pennsylvania casinos will also get a big boost in their gaming business this summer after legislators in the state approved casino table games earlier this year.
MGM has received approval of Pansy Ho as a business partner in other US states where the organization has casino interests. MGM and Ho are collaborating together in casino projects in Macau, the new gaming capital of the world.
Although they are planning to sell their share of the Borgata Casino, the organization has not ruled out a return to Atlantic City should the state gaming regulators change their opinion on Pansy Ho.
The group will be permitted to reapply for a gaming license in the state of New Jersey 2 ½ years after the sale of the Borgata Casino is finish.
03/17/2010 12:19 PM