January 25th, 2010 at 8:10:44 AM
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MGM may exit Atlantic City because New Jersey gaming authorities want MGM Mirage to sever its ties with Pansy Ho because of her 88-year-old billionaire father's alleged connection to Chinese organized crime triads. Nevada and Mississippi gaming regulators gave their approval to the relationship. New Jersey, however, wants to hold a public hearing on her suitability as a business partner. If she's rejected, MGM Mirage would be forced to sell either its Macau or Atlantic City assets.
MGM owns half of the Borgata hotel and casino resort, which is the newest, largest(by revenue), and most luxurious individual casino in Atlantic City , and the one that is surviving the recession far better than any other casino. By gaming revenue (2009 is only 3 quarters):
All total MGM/MIRAGE controls about 10% of the Atlantic City revenue, but Borgata is the most successful hotel. Is NJ GCB crazy? Will Boyd try to buy out their partner considering their attempts to buy Station Casinos?
MGM owns half of the Borgata hotel and casino resort, which is the newest, largest(by revenue), and most luxurious individual casino in Atlantic City , and the one that is surviving the recession far better than any other casino. By gaming revenue (2009 is only 3 quarters):
2008 | 2009 | Corporation |
---|---|---|
-1.62% | -4.7% | MGM/Boyd shares ownership of Borgata |
-6.18% | -16.0% | Harrah's Entertainment |
-10.35% | -13.7% | Trump |
-15.02% | -20.8% | Colony Capital |
-11.63% | -13.4% | Tropicana (bankrupt) bought by Carl Icahn |
All total MGM/MIRAGE controls about 10% of the Atlantic City revenue, but Borgata is the most successful hotel. Is NJ GCB crazy? Will Boyd try to buy out their partner considering their attempts to buy Station Casinos?
January 25th, 2010 at 10:01:58 AM
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It doesn't surprise me, considering that Atlantic City's tight controls were partly responsible for getting Las Vegas cleaned up.
FYI: I wonder how many people even know that MGM owns part of Borgata. They don't make a point of telling their average player. You'd think that player club would have some sort of tie in, but if there is, it's a secret.
The only reason I knew is because Google Maps had the road around Borgata named both Borgata Blvs and MGM Blvd. I say 'had' because today Google has no name on that road.
FYI: I wonder how many people even know that MGM owns part of Borgata. They don't make a point of telling their average player. You'd think that player club would have some sort of tie in, but if there is, it's a secret.
The only reason I knew is because Google Maps had the road around Borgata named both Borgata Blvs and MGM Blvd. I say 'had' because today Google has no name on that road.
I invented a few casino games. Info:
http://www.DaveMillerGaming.com/ —————————————————————————————————————
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
January 25th, 2010 at 12:38:47 PM
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The MGM players club is valid at Gold Strike MS, and Beau Rivage on the gulf coast, and MGM Detroit. These casinos help build brand loyalty.
But the players club is not valid at Gold Strike in Jean NV, either Circus Circus in Vegas and Reno, Slots-A-Fun Casino, or Railroad Pass in Vegas. Also either property that is 50% owned (Silver Legacy in Reno or Borgata in Atlantic City) is a member of the Player's Club. With the exception of Borgata I presume that MGM MIRAGE does not want to dilute the value of the club with all the minor properties they accumulated over the last decade. Possibly the agreement with Boyd when they opened the property required that neither corporation promote their own Nevada casinos.
I imagine that Harrah's builds a lot of brand loyalty in Atlantic city where they control over 40% of the market and 4 out of 11 casinos. That translates into loyalty when East coast customers visit Las Vegas. Borgata is roughly 16% of the AC market, and MGM only owns half of the casino.
But the players club is not valid at Gold Strike in Jean NV, either Circus Circus in Vegas and Reno, Slots-A-Fun Casino, or Railroad Pass in Vegas. Also either property that is 50% owned (Silver Legacy in Reno or Borgata in Atlantic City) is a member of the Player's Club. With the exception of Borgata I presume that MGM MIRAGE does not want to dilute the value of the club with all the minor properties they accumulated over the last decade. Possibly the agreement with Boyd when they opened the property required that neither corporation promote their own Nevada casinos.
I imagine that Harrah's builds a lot of brand loyalty in Atlantic city where they control over 40% of the market and 4 out of 11 casinos. That translates into loyalty when East coast customers visit Las Vegas. Borgata is roughly 16% of the AC market, and MGM only owns half of the casino.
January 25th, 2010 at 1:31:31 PM
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On that subject, what about connections with Foxwoods?
The new hotel and casino is attached, and called "MGM at Foxwoods", but I haven't received any MGM related info about that either.
The new hotel and casino is attached, and called "MGM at Foxwoods", but I haven't received any MGM related info about that either.
I invented a few casino games. Info:
http://www.DaveMillerGaming.com/ —————————————————————————————————————
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
January 25th, 2010 at 8:39:18 PM
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Quote: pacomartin...Railroad Pass in Vegas...
MGM owns Railroad Pass?! Now _that_ is a well-kept secret.
But you're right...there's the MGM/Mirage logo in the bottom corner of their website.
Railroad Pass is going to be the new casino that I visit next time I am in LV. (There aren't many left to go.)
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
January 26th, 2010 at 1:28:07 PM
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Circus Circus Enterprises originated with Jay Sarno's 1968 opening of the Circus Circus Hotel and Casino. The group subsequently developed the Excalibur Hotel and Casino in 1990, the Luxor Las Vegas in 1993, and the Mandalay Bay Resort and Casino in 2000 for which the group was renamed. The group was also a partner in the 1996 opening of the nearby Monte Carlo Resort and Casino.
On March 20, 1995, Circus Circus Enterprises announced that it had agreed to acquire Gold Strike Resorts, a closely held budget casino owner and operator, in a deal valued at more than $600 million. At the time of the acquisition Jean, Nevada based Gold Strike Resorts owned the Gold Strike Hotel and Gambling Hall, Nevada Landing Hotel and Casino, and Railroad Pass Hotel and Casino.
On March 1, 1999 MGM Grand Inc. acquired Primadonna Resorts in an all-stock transaction that had been announced on November 9, 1998. Primadonna owned half of NYNY.
On June 4, 2004 MGM Mirage announced a bid to acquire Circus Circus.
On March 20, 1995, Circus Circus Enterprises announced that it had agreed to acquire Gold Strike Resorts, a closely held budget casino owner and operator, in a deal valued at more than $600 million. At the time of the acquisition Jean, Nevada based Gold Strike Resorts owned the Gold Strike Hotel and Gambling Hall, Nevada Landing Hotel and Casino, and Railroad Pass Hotel and Casino.
On March 1, 1999 MGM Grand Inc. acquired Primadonna Resorts in an all-stock transaction that had been announced on November 9, 1998. Primadonna owned half of NYNY.
On June 4, 2004 MGM Mirage announced a bid to acquire Circus Circus.
April 13th, 2011 at 2:13:36 PM
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MGM announced today that they intended to become the majority owner in MGM Macau .
Ownership of the 600-room MGM Grand Macau, which opened in 2007, will be placed into a new public company, MGM China Holdings. Under terms of the agreement, the ownership stake of Hong Kong businesswoman Pansy Ho will be reduced from 50 percent to 29 percent. MGM Resorts will have 51 percent ownership in the public company with the remaining 20 percent sold to the public.
Ownership of the 600-room MGM Grand Macau, which opened in 2007, will be placed into a new public company, MGM China Holdings. Under terms of the agreement, the ownership stake of Hong Kong businesswoman Pansy Ho will be reduced from 50 percent to 29 percent. MGM Resorts will have 51 percent ownership in the public company with the remaining 20 percent sold to the public.
April 13th, 2011 at 6:34:39 PM
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MGM will not share in the proceeds from the IPO, it will all go to Pansy, making her a much richer woman. She has agreed to "invest" $300 million in MGM bonds. This should solidify MGM's decision to exit the NJ market. I would not be surprised if a "friendly" buyout of the Borgata stake is arranged to take the heat off.
Simplicity is the ultimate sophistication - Leonardo da Vinci
April 13th, 2011 at 6:52:56 PM
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Quote: AyecarumbaI would not be surprised if a "friendly" buyout of the Borgata stake is arranged to take the heat off.
Leonard Green & Partners has agreed to buy out for $250 million. That also means they will have to assume $400 million in debt which is MGM's half of the load. Boyd passed on first right of refusal, because they said they want to reduce debt.
If the LG deal falls through (as rumored), then I am sure that Boyd will be happy to take over the entire property for just assuming the debt. The property had revenue of $643,904 (more than Wynn/Encore) from the casino and $738,429 overall.
April 13th, 2011 at 7:13:13 PM
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Quote: AltutPansy Ho?
The daughter of the Chinese billionaire who had control of all gambling licenses in Macau for 40 years.
April 13th, 2011 at 7:31:06 PM
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Surely a preety lady like that can't be bad, can she ??
April 13th, 2011 at 8:17:09 PM
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Stanley )age 89) had 4 wives and 17 children. She must be fairly tough to even fight it through her own family.
April 13th, 2011 at 8:39:10 PM
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On a related note, I recommend the book "The Boardwalk Jungle," by Ovid Demaris, for insight into the attempts to fight off corruption (ha!) in Atlantic City when casinos came to town.
Highly recommended.
see ...http://www.amazon.com/Boardwalk-Jungle-Ovid-Demaris/dp/0553261215/ref=sr_1_1?ie=UTF8&s=books&qid=1302752240&sr=1-1
Highly recommended.
see ...http://www.amazon.com/Boardwalk-Jungle-Ovid-Demaris/dp/0553261215/ref=sr_1_1?ie=UTF8&s=books&qid=1302752240&sr=1-1
"What, me worry?"