Three years after agreeing to exit Atlantic City rather than give up its lucrative Macau casino, MGM Resorts International wants back in the seaside resort.
Taking its cue from recent statements by regulators hinting at an accommodation, the Las Vegas-based casino giant has formally petitioned the NJ Casino Control Commission to reconsider its status as a licensee and allow it to keep its 50% interest in the Borgata Hotel Casino & Spa.
“We would welcome the opportunity to once again be an active, contributing member of the New Jersey gaming marketplace,” the company said.
CCC Chairman Matthew Levinson said the request would be heard this week.
MGM decided to leave New Jersey in order to keep its partnership with Macau/Hong Kong businesswoman Pansy Ho, whom the commission found unsuitable as a licensee based on the ties her father, Macau casino tycoon Stanley Ho, is alleged to have had with Chinese organized crime. MGM and Ms Ho originally were 50-50 partners in MGM’s Macau casino, which was licensed as a sub-concession under Mr Ho’s casino operating company. MGM reached an agreement with New Jersey authorities to sell its stake in Borgata rather than abandon the more lucrative Chinese enterprise.
That was in 2010, and MGM has been unable to sell its Borgata interest in the midst of Atlantic City’s plummeting fortunes. Even its Borgata partner, Boyd Gaming, passed.
Other things have changed as well, the company says.
For one, Pansy Ho’s stake in the Macau holding company has been reduced to 27% and MGM controls the casino and its operations. Second, advanced age and deteriorating health have forced Stanley Ho to divest most of his business interests, and the falling out among members of the family that ensued makes it less likely that he exerts control over his daughter.
Currently, MGM has until 24th March to direct a trustee overseeing its Borgata stake to sell it. After that, the trustee would be responsible for lining up a buyer.
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