MGM Mirage Moves out of Atlantic City
Atlantic City Boardwalk
In a move that has been in the works for the past few months, if not years, MGM Mirage has decided to move out of Atlantic City and focus their efforts on the casino market in Macau. An unnamed source has told the Wall Street Journal that MGM plans to “divest” its 50% stake in the Borgata resort, one of Atlantic City’s leading casinos.
It’s believed that the move will put pressure on the New Jersey Casino Control Commission to reconsider its view of MGM’s Macau business partner, Pansy Ho. In 2005, the commission released a report that defined Pansy, Stanley Ho’s daughter, as an “unsuitable” business partner. While Nevada’s casino regulators have found that MGM’s business relationship with Ho will not have any detrimental effect on the casino industry, or the state in general, it seems New Jersey beg to differ.
Atlantic City is currently reporting its worst revenue reports in ten years and, as Macau continues to overtake Las Vegas’ share of profit, MGM appear hold no qualms about cutting their ties with the United States and moving towards the Asian gaming market. The news of the Borgata sale will no doubt force the New Jersey Casino Control Commission to reconsider their views on MGM and Ho.
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