MGM Mirage Leaving Atlantic City Casino Gambling Industry

At a time when New Jersey cannot afford to lose major US-based gaming companies, they are about to do so. MGM Mirage has decided that they will sell their fifty percent share of the Borgata Hotel Casino & Spa.

Gaming regulators in the state requested that MGM cut ties with Pansy Ho, the daughter of famous Asian casino tycoon Stanley Ho. MGM has partnered with Pansy Ho on several projects, and instead of losing a partner, they chose to cut ties with Atlantic City.

The move to sell their share of the Borgata deals the AC casino industry another blow. Already, the city's casino industry is struggling to maintain their relevance in the Northeastern US. The economic recession has crippled the industry, and competition is making it harder to bring customers back to the city.

Pennsylvania casinos had higher slot revenue in December than AC casinos for the first time ever. The Pennsylvania casinos will also get a boost in business this summer after lawmakers in the state legalized table games earlier this year.

MGM has won the approval of Pansy Ho as a business partner in other states where the company has casino interests. MGM and Ho are partnering on projects in Macau, the new gambling capital of the world.

Although they plan on selling their half of the Borgata, the company has not ruled out a return to Atlantic City should gaming regulators change their opinion on Ho. The company will be allowed to reapply for a gaming license in New Jersey two and a half years after the sale of the Borgata is complete.

March 14, 2010
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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