Facebook
Fark
Digg
Reddit
Stumble
Friday, March 12, 2010 | 7:45 a.m.
Casino billionaire Stanley Ho and daughter Pansy Ho attend a groundbreaking ceremony for an MGM Mirage casino in 2005 in Macau.
Sun Archives
- MGM Mirage disputes N.J. regulators’ authority to vet its partner in Macau (2-1-10)
- New Jersey could come between MGM Mirage, Macau (12-29-09)
- MGM Mirage executive Gary N. Jacobs resigns (12-18-2009)
- Las Vegas Sands moves forward with Macau project (11-11-2009)
- N.J.: MGM Mirage should ‘disengage’ from Macau partner (5-19-09)
- MGM Mirage, Boyd gaming license investigation reopened (7-31-09)
- Ho, MGM Mirage deal should pass regulators (7-19-05)
- MGM Mirage talks continue in Macau (2-10-04)
Sun Coverage
MGM Mirage today said it entered into a settlement agreement with the New Jersey Division of Gaming Enforcement under which it will sell its 50 percent stake in the Borgata Hotel Casino & Spa and related leased land in Atlantic City.
The deal was driven by the division's recommendation to the New Jersey Casino Control Commission last year that MGM Mirage's partner in the Chinese gambling district of Macau, Pansy Ho, be found unsuitable because of allegations her father Stanley Ho has had ties to organized crime.
The division recommended that MGM Mirage be directed to disengage from any business association with Pansy Ho. MGM Mirage instead chose to maintain its casino partnership in Macau and at least temporarily exit the New Jersey market.
Las Vegas-based MGM Mirage had previously disclosed settlement talks were under way focusing on placing the company's New Jersey interests into a divestiture trust. Under today's settlement, which is subject to approval of the New Jersey Casino Control Commission:
-- MGM Mirage's interest in the Borgata and the land will be placed into a divestiture trust and the interest is to be sold within 30 months.
-- MGM Mirage will cease doing business as a gaming licensee in New Jersey, but can re-apply for a license there 30 months after the sale
"We have the utmost respect for the DGE but disagree with its assessment of our partner in Macau," Jim Murren, MGM Mirage chairman and chief executive, said in a statement. "Regulators in other jurisdictions in which we operate casinos have thoroughly considered this matter and all of them have either determined that the relationship is appropriate or have decided that further action is not necessary. Since the DGE takes a different view, we believe that the best course of action for our company and its shareholders is to settle this matter and move forward with the compelling growth opportunities we have in Macau."
The Casino Control Commission is expected to hold a hearing on the settlement on March 17.
Prior to the sale, the divestiture trust will retain any cash flows from the trust assets and pay property taxes and other costs attributable to the trust property.
"Until all the trust property is sold and the trust terminates, the trust may not distribute to the company any funds, including earnings, lease payments or sale proceeds received in connection with the trust property," MGM Mirage said in a regulatory filing.
MGM Mirage will be the sole economic beneficiary of the trust.
"The Borgata is the most successful property in the Atlantic City marketplace, and we expect there will be strong interest in this valuable asset," said Murren.
MGM Mirage said Boyd Gaming Corp. of Las Vegas, it's partner in Borgata, isn't affected by the settlement. Boyd hasn't indicated if it will buy out its partner.
Good move. Ever been in AC on a rainy Thursday in October? Nobody home. This place makes Vegas look like a boomtown.
Sad, but MGM is making the right choice.
Pansy Ho? Really? Her father obviously hates her, based solely upon her name, I wouldn't worry too much about his influence.
looks like thier chinese business is more important to them then their atlantic city gig and borgatas supposedly the best property on the shore
With full service gaming in PA, and slot barns coming to NYC, AC is going to be lucky to hold what business they have. China is where the action is going to be. And MGM needed the Ho's to get into the business there. They were never big in AC anyway.
So much suppport the U.S.A we would rather partner up with communist and mob affliliates in China.MGM why don't you sell off the rest of your assets in the U.S. and move you hind ends to China.Can not wait until the mob in China takes you to the cleaners
Dull witted folks can't understand that American companies pulling profits from China is a good thing.
The DGE & CCC have an obligation to release the report that caused this decision. They need the people of New Jersey to know what is so disreputable about Pansy Ho that they forced the second-largest gaming company out of the state.
A corporation concerned about ties to organized crime? At least the mafia had a code of ethics.
It is interesting that so many are ready to make Stanley Ho a part of the Triads, even though every article, and every other article i have ever read regarding this, clearly states that these are merely allegations. So much for being innocent until proven guilty!
dave202...I agree...I live in AC...the Borgata is the best casino here, but MGM is doing the right thing. I have heard the Stanley Ho rumors but it does seem strange that every other jurisdiction approved MGM for the Macau license. Just NJ being anti-business again. This is not what the gaming market in AC needs right now with all the new competition. A posting on another article said "will the last person in AC please turn out the lights?" I'm starting to agree.
A wise, fair and balanced descision that exemplifies the soundness of ubiased leadership leaving the the door ajar should conditions improve at a later date.
The recommendation to the New Jersey Casino Control Commission that MGM Mirage's partner in Macau, Pansy Ho is unsuitable because her father Stanley Ho has ties to organized crime. Why if New Jersey rejects them, does Nevada allow it???
enviro....nobody knows the answer...maybe NJ too harsh...maybe NV too loose...but a regulator usually has pretty much the standards, I would think. Doesn't make sense but I think MGM was approved in every other jurisdiction including NV.
sorry meant every regulator has the SAME standards, I would think
Yes, Borgata is the most fabulous property in AC, the Water Club addition is certainly the most luxurious. MGM Mirage did make the right decision, and Macau is far more profitable right now than AC. I love AC and learned my love of casinos there but haven't visited this year yet, will be at the Palazzo in May, far more luxurious than the Borgata or The Water Club.
Smart force out some one you need, good luck AC.
Traveled to AC last fall. We smelled rotting clams for three days. The Borgata is very nice but I will never again travel to AC instead of LV.