Inside Asian Gaming

January 2008 | INSIDE ASIAN GAMING 9 Cover Story at a time when fierce competition is pushing up junket commission rates and eroding margins in the VIP business, Mr Lanni points out that when discounts started emerging in the high-end casino busi- ness in the US in the 1980s,“the increase in volume more than made up for declining margins.” He adds:“I suspect some of that is taking place now here in Macau.” A savvy 2007 The opening of MGM Grand Macau topped off “a year of savvy deal making and expansion” for Mr Lanni, according to Forbes . Last year, MGM MIRAGE sold a 50% stake in its US$7.8 billion Las Vegas hotel-condo CityCenter resort (opening in 2009) to Dubai World for just under US$3 billion, and later sold 4.8% of its shares to Dubai World for another US$1.2 billion. In October, the US$800 million MGM Grand Detroit opened. Days later, the company announced plans to build a US$5 billion resort in Atlantic City that will open in 2012 with 3,000 rooms, 5,000 slots and 200 tables. Then in November, it agreed to develop a multibillion- dollar gambling complex with Kerzner International and Istithmar Hotels on the north end of the Vegas Strip. “Lanni is also pushing the company beyond its gambling roots,” according to Forbes, with MGM MIRAGE planning to develop a multibillion-dollar hotel and entertainment complex in Abu Dhabi with Mubadala Development that will not feature casino gambling. The project, designed to draw on the company’s experience in hotel management, will open in 2012. MGM Grand Macau became MGM MIRAGE’s first property out- side the US, and Mr Lanni is confident it will soon become one of his company’s top performers—the current top performer is the Bellagio, followed by MGM Grand and Mandalay Bay, all of which are located in Vegas. Mr Lanni feels MGM MIRAGE’s presence in Macau is vital to its