MGM Mirage And Dubai World Reach CityCenter Casino Agreement

MGM Mirage has had themselves a roller coaster of a couple of months and finally the ride has ended back on solid ground. Their CityCenter project in Las Vegas had been on the ropes several times, and each time MGM fought to keep the project alive.

Now, the company has made a deal with their partners, Dubai World, to ensure that the project will be completed as planned. MGM had made $135 million in payments for Dubai World while the two were battling, and part of the agreement is that Dubai will pay MGM that money back.

"It's the best possible outcome I feel the joint venture could have come to," said MGM Mirage Chief Executive Jim Murren, as reported in The Wall Street Journal. The deal relieves a huge burden off of the backs of MGM.

The company did agree as part of the deal to pay for any cost overruns. That had been a sore subject for Dubai, who was suing MGM and blaming them for previous cost overruns.

Dubai also made some concessions in finalizing the deal. They agreed to drop the lawsuit against MGM, and continue to pay their half of the rest of the cost of the project.

With such a big project now assured of completion, other Las Vegas casino operators must concern themselves with how the new CityCenter will effect business. Revenue is already down on the hotel side of business, and CityCenter will only further hurt existing hotels.

April 30, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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