The New Jersey Division of Gaming Enforcement has sent a report to the state Casino Control Commission last month recommending that the approval requested by MGM Mirage of a partnership with Pansy Ho, the daughter of Macau gaming magnate, Stanley Ho, be denied. Pansy Ho and MGM Mirage have partnered on the MGM Grand Macau, a $1 billion casino resort in the Chinese gambling enclave, which opened in 2007. In gaming jurisdictions where it is licensed, MGM Mirage was required to obtain approval for the partnership. Four states—Michigan, Illinois, Nevada and Mississippi—have already granted their OK, but New Jersey had spent many months conducting a complete investigation.

Casino Control Commission Chairwoman Linda Kassekert told Global Gaming Business that she and her staff have not yet read the report, because it had just been delivered, but was “likely” to hold hearings on its findings.

The contention of the DGE report is likely to be an ongoing connection between Pansy Ho and her father, Stanley, who held a monopoly on gaming in Macau for many years. When Portugal turned over its former territory to China in 1999, the Chinese government opened up gaming to international companies. Three concessions were granted at that time: Stanley Ho’s SJM, Wynn Resorts and Galaxy Entertainment. The MGM Macau operates under a sub-concession granted to Pansy Ho from SJM.

In a statement released following the report by Ho, she said, “I and my advisers will need time to read and consider the contents of the report and decide how best to respond to it.”

In most jurisdictions, Stanley Ho would not be able to be licensed because of reported connections to the Triads, Chinese organized crime groups. Pansy, and her sister and business associate, Daisy, have admitted to receiving some of their funding from Stanley, but deny he wields any influence over them or their business operations.

Some of the consequences for MGM Mirage could be giving up its license in New Jersey should it decide to continue its relationship with Ho in Macau. MGM owns 50 percent of the Borgata in Atlantic City, which is operated by partner Boyd Gaming. The company also owns 50 percent of MGM Grand Macau (l.), which it operates for the partnership. The company could choose to relinquish the Macau investment and retain its New Jersey license.

MGM Mirage had announced a $5 billion MGM Grand Atlantic City and had begun the planning and design process until the declining economy and sinking revenue in Atlantic City put a stop to the plans. The company insists that the project is merely on hold and it will resume design and construction once the economy turns around. But should it decide to focus on Macau rather than Atlantic City, the project would be effectively dead.

In Nevada, just prior to the Gaming Control Board’s decision to approve the relationship between Pansy Ho and MGM, the company announced a huge development in Jean, about 30 miles south of Las Vegas near the proposed international airport. The project included a new casino resort and thousands of homes. Several months later, the project was quietly dropped, citing the bad economy. Company officials deny there was any link between the two events.

Dennis Neilander, chairman of the Nevada Gaming Control Board, told the Las Vegas Review-Journal that New Jersey and Nevada have different laws and interpretations of laws when considering the suitability of business partners. He assumes that New Jersey simply weighed the facts differently than did his agency.

“If there was evidence not provided to us, then there would be a concern,” Neilander told the newspaper. “Otherwise, it would seem that the Division of Gaming Enforcement came to a conclusion using the same facts but applying New Jersey law.”�

By Casino Connection Staff