MGM Resorts Approved To Enter Atlantic City

(RTTNews) - MGM Resorts International (MGM) Wednesday said it has been approved as a holding company of a casino licensee in the state of New Jersey, following actions at a regular meeting of the New Jersey Casino Control Commission in Atlantic City.

Jim Murren, Chairman and CEO of MGM Resorts, said, "After a thorough and comprehensive review, we are gratified by the (unanimous) vote of confidence from the New Jersey Casino Control Commission and the New Jersey Division of Gaming Enforcement."

MGM Resorts has 50 percent ownership in Borgata Hotel Casino & Spa, and the interest is presently held in a divestiture trust.

The approval comes after a probe over MGM's business ties with Pansy Ho, whose father Stanley Ho was allegedly linked to organized crime. The regulators believed Pansy Ho was financially dependent on her father.

New Jersey's gaming enforcement division initiated an investigation into MGM's affiliation with Ho in 2005. MGM withdrew before any findings were out and placed its 50 percent ownership in Borgata into a fund controlled by a trustee.

Meanwhile, the joint venture with Ho sold shares in an initial public offering in 2011. That resulted in MGM holding 51 percent, and Ho 24 percent. Highlighting Ho's smaller share, MGM argued that her enormous wealth and disagreements with her father showed she was independent.

Under the terms of the trust agreement and the stipulation of settlement with the Division of Gaming Enforcement or DGE, the trustee will prepare a final accounting for approval by the DGE and, thereafter, for approval by the Casino Control Commission.

After receiving the required approvals, MGM's interest in Borgata, the around $86 million of cash and investments, and the title to certain leased real property in Atlantic City in the trust will be transferred to MGM.

Authority to grant the requisite administrative approvals has been delegated by the Commission to its Chairman, and receipt of the approvals is expected to occur in 30 days.

MGM closed down 0.5 percent in regular trading on Wednesday.