Inside Asian Gaming

INSIDE ASIAN GAMING | February 2010 M GM MIRAGE isn’t waiting to see if New Jersey’s Gaming Control Commission is going to press the point about Pansy Ho being an “unsuitable partner” for the company’s Macau venture. It seems the Las Vegas-based operator is willing to ditch its 50% investment in Atlantic City’s Borgata Hotel Casino & Spa in order to protect its long-term interests in the buoyant Asian market. That’s despite the fact MGM Grand Macau has been underperforming relative to its footprint and to the US$1.3 billion capital invested in it. This has been attributed by analysts to a lacklustre showing in the Macau VIP segment andonly amodest thoughgrowing appeal in the mass-market segment. MGM Grand Macau came bottom of the Macau revenue league table in 2009 with 9% of the market, though admittedly Macau ‘failure’ looks like success in any other gaming market. The US$1.3 billion generated by MGMGrandMacauwas almost twice the revenue generated by The Borgata in Atlantic City. And the Borgata revenue has to be split 50:50 with the company’s local partner, Boyd Gaming. Signals MGM MIRAGE had already given strong indications of its commitment to the Macau project even before the news of a possible New Jersey asset sale. Grant Bowie, president of MGM Grand Paradise Ltd, the operating company for the joint venture with Ms Ho, stated in January the Macau property would be given a brand image makeover to boost its appeal to Chinese players. Elements of that revamp are likely to happen in the run up to Chinese New Year on 14th February. In Chinese culture, the lunar new year is a time for cleaning homes of rubbish and bad memories, paying off debts and generally turning over a new leaf in the manner of the New Year resolutions made in the West. Bored Walk MGM MIRAGE appears to have lost patience with New Jersey over the Pansy Ho ‘problem’ MGMMIRAGE 18