The MGM Grand is looking to re-establish the 50% ownership that they previously had in the Borgata. However, three years ago the company agreed to surrender half of its ownership in the top casino in Atlantic City, rather than to cut ties with the family that has suspected links to Chinese gangsters. The Las Vegas company is now asking regulators in the New Jersey area to consider allowing it to keep its 50% stake in the Borgata Hotel Casino & Spa. The request was made in the petition to the Casino Control Commission, which was filed on Friday. MGM was asking for permission to reconsider its status, and see if it was fit to hold a license to a casino in the New Jersey area again. The company released a statement about the incidents shortly after.
“MGM Resorts International is, and always has been, committed to the highest standards of operation and regulatory compliance,” the company said. “If our petition is successful, we would welcome the opportunity to once again be an active, contributing member of the New Jersey gaming marketplace through our 50 percent ownership of Borgata.”
The MGM originally reached an agreement with the gambling enforcement division in March of 2010. It was instructed to sell half of its current interest at the time in the Borgata, because the company was not faith deemed to continue to hold at stake in the casino. The Atlantic Casino market plunged in 2008, just like it did in Las Vegas. Currently, the other half of the stake in the company is owned by Boyd Gaming, and they are not keen to selling the rest of the property back to the MGM. In the petition to the New Jersey regulatory bodies, the MGM spelled out several changes that it has made to its structure in order to justify them keeping their half state ownership in the casino. The MGM Macau is a casino that has fallen under a lot of scrutiny as of late, and its connections to Chinese gangsters as well known. MGM argues that they are no longer connected to those individuals in that they now control the Board of Directors, and have the ability to break any ties with the individuals that once cause them to be kicked out of their stake in the Borgata.
“Stanley Ho is 91 years old and his health has declined precipitously in the last three years,” the company wrote in its petition. “Since July 2009 Stanley Ho has divested most of his business interests,” including a company in which his daughter is now the controlling shareholder.”
It will be interesting to see how the regulatory body response to the petition that the company put forward. Although it is thought that they will turn it down, there were some interesting points that were put forward in the petition, and the regulatory body is going to be considering it in the coming weeks. If approved, the MGM will be able to reestablish their 50% stake in the company, despite the hardships that they have felt as of late.