MGM return a boost to ailing Atlantic City gaming market
MGM Resorts International has won the right to re-enter the Atlantic City gaming market, following an investigation by regulators into the company’s ties with an overseas investor deemed unsuitable.
It is a rare piece of good news for an industry in Atlantic City seemingly in freefall, coming off the back of news yet another casino is likely to close in the city.
New Jersey’s Casino Control Commission gave the green light to MGM’s return, after a year-long investigation into its ties with Pansy Ho, Hong Kong’s richest woman.
Ho was allegedly financially dependent on her father Stanley Ho who had built up a large gambling empire in Macau, but was also under investigation for links to organized crime.
During the early stages of the commission’s investigation, MGM put its 50% share of the Borgata Hotel Casino and Spa into a fund controlled by a trustee, effectively giving up control of the business.
The Borgata is one of Atlantic City’s best-performing gaming properties.
MGM subsequently gained a majority stake in the joint venture business and Miss Ho managed to convince the Casino Control Commission of her financial independence.
I see a company that looked for a way to get to the most lucrative gaming market on the planet, but I also see a company that took steps to remedy problems created by those shortcuts," said the commission’s chair, Matthew Levinson, referring to MGM’s Macau joint venture with Miss Ho.
MGM is one of the largest owners of undeveloped real estate within Atlantic City’s casino zone.
MGM Chief Executive James Murren was quizzed on the company’s future plans in Atlantic City and he said: "We’re going to go at this very aggressively, and I’m acutely aware of the sad situation that has beset the city."
"I don’t have any answers now, but I’m going to try very hard."
It follows more bad news for the gaming industry in Atlantic City, as reports suggest Trump Taj Mahal may be forced to close in November.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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