Inside Asian Gaming

February 2010 | INSIDE ASIAN GAMING “We need to make it a China brand… that’s my role,” said Mr Bowie, indicating a number of practical changes, including making the casino’s main entrance more accessible so taxis can more conveniently drop off hotel guests and high rollers. Given the publicity about its regulatory difficulties in New Jersey and its well publicised need for cash to service its high levels of global debt, MGM MIRAGE is likely to realise only fire sale prices for its stake in Atlantic City’s Borgata. They stood at nearly US$13 billion at last count, including US$8.5 billion for its new CityCenter development in Las Vegas. There are, however, potentially sound reasons for MGM MIRAGE to divest its New Jersey interests even at potentially distressed prices. The number of casino licences issued by neighbouring states on America’s north- eastern coast has grown, although typically in increments, with slots being legalised first, followed later by table gaming—the latter seen by many legislators and industry opponents as less about entertainment and more about hardcore gambling. Competition The net result is that the outside competition for consumer dollars in a traditional gambling venue such as Atlantic City has increased and left many of that city’s older properties looking rather dated. That trend has been compounded by country wide economic recession that has bitten especially deeply in the northeast with its old-style heavy industries. Pennsylvania, which legalised slots in 2004 and table games only in January this year, is a short bus ride and even shorter plane ride from New York City, from where many of Atlantic City’s customers traditionally hail. Some of these new regional resorts are amajor improvement on the slot hall and burger bar offerings found in other regional gaming jurisdictions. Las Vegas Sands is spending around US$880 million on Sands Casino Resort Bethlehem, in Pennsylvania. The first phase, costing US$350 million, opened on the site of a former steel plant in May last year, with 3,250 slots and electronic games. The resort will also have 300 hotel rooms and a mall with 40 shops once completed. According to the New Jersey Casino Control Commission, Atlantic City’s casino revenues fell 13.2% in 2009 to US$3.9 billion. The Borgata has actually been MGM Grand Macau 19