Lobbyist says merger won’t necessarily hurt AC

Thursday, March 9, 2000 | 11:13 a.m.

THE ASSOCIATED PRESS

ATLANTIC CITY -- The casino industry's top lobbyist says the merger of MGM Grand and Mirage Resorts might not necessarily be bad news for Atlantic City.

In town for an address to the Greater Atlantic City Chamber of Commerce, American Gaming Association President Frank Fahrenkopf Jr. said the $4.4 billion buyout by MGM Grand was shocking, but said it continues a trend affecting many sectors of the United States economy -- not just casinos.

Both companies planned to build in Atlantic City, but many people here believe the takeover will prompt MGM Grand to abandon its project and to proceed with Mirage's planned 1,144-room project in the marina district.

"Now, what's going to happen?" he said. "Will they go forward with both or just one -- and which one?"

"I wouldn't say this necessarily means a negative for Atlantic City, any more than it means a negative for Biloxi or Las Vegas or anywhere else these companies have projects in development. The jury's still out," Fahrenkopf said.