MGM Resorts International’s purchase of Boyd Gaming Corp’s 50 percent stake in Atlantic City’s Borgata Hotel Casino and Spa has received regulatory approval in New Jersey, reports the Associated Press (AP).
MGM Resorts had been effectively forced to give up control of its then 50-percent interest in the Borgata, one of Atlantic City’s best-performing gaming properties, because of issues raised in 2009 by the New Jersey Division of Gaming Enforcement regarding the “suitability” of Macau casino investor Pansy Ho Chiu King, at that time a 50 percent partner with MGM Resorts in a Macau casino business.
Ms Ho later sold down her stake in MGM China Holdings Ltd, the entity controlling the Macau gaming operation.
MGM Resorts had put its 50 percent Borgata ownership into a fund controlled by a trustee when it pulled out of the Atlantic City market voluntarily.
In September 2014, the New Jersey Casino Control Commission voted unanimously to allow MGM Resorts to re-enter the Atlantic City casino market.
On May 31 this year, MGM Resorts said it had entered into an agreement to acquire Boyd Gaming Corp’s 50 percent interest in the Borgata.
On Wednesday the Casino Control Commission voted 3-0 to approve lease agreements needed for the sale that will give MGM Resorts full control of the property.
Boyd will receive a consideration of US$900 million, plus half of any future tax settlement MGM Resorts reaches with Atlantic City, reported AP.
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Analyst at Roth Capital Partners