RSS 2.0 FeedVol. 3, No. 11, November 2007, Global Gaming Roundup
Eastern Front
MGM Mirage announces mega-development in Atlantic City, opens permanent Detroit casino
MGM Mirage last month shifted its attention from the massive CityCenter project and joint ventures with Kerzner International and Dubai World in Macau to debut the permanent MGM Grand Detroit and announce the MGM Grand Atlantic City.
The opening of the permanent casino comes eight years after MGM Grand Detroit debuted its temporary casino, which closed its doors one day in advance of the grand opening of the permanent facility. MGM Grand Detroit will be one of three permanent casinos to operate in the city of Detroit once the MotorCity Casino and Greektown Casino permanent complexes open later this year, and next year, respectively.
At its grand opening press conference. Jim Murren, president and COO of MGM Mirage, the parent company of MGM Grand Detroit, pointed out that his company has created 3,000 permanent jobs, invested $800 million into its permanent casino and previously spent $200 million on its temporary casino for a total capital investment of over $1 billion in Detroit. He said that it has been his company’s goal to broaden the awareness of Detroit to the people of Cleveland, Chicago, and across the Midwest and East Coast. He thanked the thousands of construction workers, hundreds of businesses that worked on the construction of the MGM Grand Detroit, and the dedicated MGM Grand team members for bringing the permanent complex to fruition.
MGM Grand Atlantic City is a $5 billion project that will occupy 60 of 72 acres set aside for the project alongside the Borgata, which is a MGM Mirage joint venture with Boyd Gaming, the operator. Along with the city’s biggest casino (280,000 square feet), MGM Grand AC will include three hotel towers holding more than 3,000 rooms and suites (one tower, a 57-story skyscraper, will become the tallest building in the state), retail, entertainment and convention facilities.
The $5 billion price tag does not include the value of the land. Unlike CityCenter in Las Vegas, there currently is no residential or condominium component to the project, but may be added at a later time on the extra 12 acres.
MGM Mirage Chairman and CEO Terry Lanni says he expects the project to create “very healthy returns” for company shareholders.
“We believe the success at Borgata demonstrates the eagerness for further evolution of the nation’s second-largest gaming market,” Lanni said. “We will continue to raise the bar, and by doing so, hope to re-energize the city’s resorts offering.”
Company officials say the announcement of the Atlantic City development is completely unrelated to an ongoing investigation by the New Jersey Division of Gaming Enforcement into the business relationship between Pansy Ho and her father, Stanley Ho, who for many years controlled all gambling in Macau. Ho’s connections to the organized crime triads have long been suspected, but Pansy Ho denies there is any business relationship between her and her father. Regulators in Nevada and Mississippi have found there to be no reason to reject the MGM joint venture with Pansy. Should New Jersey turn down the arrangement, however, MGM officials have suggested they would abandon New Jersey in favor of Macau.
MGM Mirage plans to file for city and state approvals toward the end of 2007 and early 2008, with groundbreaking scheduled for mid-2008. Completion is set for 2012.
The opening of the permanent casino comes eight years after MGM Grand Detroit debuted its temporary casino, which closed its doors one day in advance of the grand opening of the permanent facility. MGM Grand Detroit will be one of three permanent casinos to operate in the city of Detroit once the MotorCity Casino and Greektown Casino permanent complexes open later this year, and next year, respectively.
At its grand opening press conference. Jim Murren, president and COO of MGM Mirage, the parent company of MGM Grand Detroit, pointed out that his company has created 3,000 permanent jobs, invested $800 million into its permanent casino and previously spent $200 million on its temporary casino for a total capital investment of over $1 billion in Detroit. He said that it has been his company’s goal to broaden the awareness of Detroit to the people of Cleveland, Chicago, and across the Midwest and East Coast. He thanked the thousands of construction workers, hundreds of businesses that worked on the construction of the MGM Grand Detroit, and the dedicated MGM Grand team members for bringing the permanent complex to fruition.
MGM Grand Atlantic City is a $5 billion project that will occupy 60 of 72 acres set aside for the project alongside the Borgata, which is a MGM Mirage joint venture with Boyd Gaming, the operator. Along with the city’s biggest casino (280,000 square feet), MGM Grand AC will include three hotel towers holding more than 3,000 rooms and suites (one tower, a 57-story skyscraper, will become the tallest building in the state), retail, entertainment and convention facilities.
The $5 billion price tag does not include the value of the land. Unlike CityCenter in Las Vegas, there currently is no residential or condominium component to the project, but may be added at a later time on the extra 12 acres.
MGM Mirage Chairman and CEO Terry Lanni says he expects the project to create “very healthy returns” for company shareholders.
“We believe the success at Borgata demonstrates the eagerness for further evolution of the nation’s second-largest gaming market,” Lanni said. “We will continue to raise the bar, and by doing so, hope to re-energize the city’s resorts offering.”
Company officials say the announcement of the Atlantic City development is completely unrelated to an ongoing investigation by the New Jersey Division of Gaming Enforcement into the business relationship between Pansy Ho and her father, Stanley Ho, who for many years controlled all gambling in Macau. Ho’s connections to the organized crime triads have long been suspected, but Pansy Ho denies there is any business relationship between her and her father. Regulators in Nevada and Mississippi have found there to be no reason to reject the MGM joint venture with Pansy. Should New Jersey turn down the arrangement, however, MGM officials have suggested they would abandon New Jersey in favor of Macau.
MGM Mirage plans to file for city and state approvals toward the end of 2007 and early 2008, with groundbreaking scheduled for mid-2008. Completion is set for 2012.
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