Borgata is a joint venture of Boyd Gaming and MGM Resorts International, with Boyd handling the day-to-day operations and MGM acting as a silent partner. The ownership is split 50/50 and, with Borgata being far and away the most lucrative casino in Atlantic City, it’s been a beneficial arrangement for both parties.
The largest hotel in New Jersey (2,800-plus rooms), Borgata opened in July 2003 and quickly shot to the top of the Atlantic City charts, contributing to a blaze of glory for the city, until casino revenues began to fall in 2007. Even today, when the market has shrunk dramatically, Borgata remains far and away the top choice for gamblers, as monthly revenue reports attest. For instance, last December Borgata grossed $50 million while its next-closest competitor, Harrah's Resort, did $30 million in business.
Borgata has expanded twice, first adding more casino floor and retail in 2005, and then opening a second hotel tower, the Water Club, in 2008. Two years later, MGM had to step back from its co-ownership role after the New Jersey Casino Control Commission deemed Stanley Ho to be a sub rosa partner in MGM's Macao casino and directed MGM to choose between China and New Jersey. MGM elected to surrender its New Jersey license. Its share of Borgata revenues was held in trust while MGM tried to find a buyer for its half of the casino. Amazingly, no one ever stepped forward, even though Borgata was a goldmine.
After Stanley Ho's daughter, Pansy, reduced her ownership stake in MGM Grand Macau in 2014, Garden State regulators looked more favorably and reinstated the parent company's New Jersey license, giving MGM access to the Borgata monies that had been withheld for four years. "Since then, MGM's Chinese operation has gone public, and Pansy Ho's influence has been diluted. She has no management role in its day-to-day operations, nor involvement with the selection of gambling junket operators that bring customers to the Chinese casino," reported The Associated Press.
In addition to Borgata, MGM owns several parcels of land in Atlantic City, which it has been unable to sell. As for loyalty programs, not only does the casino-hotel offer its own "Borgata Rewards" points, it is listed prominently as the "preferred partner" of M life. According to MGM’s Sandy Zanella, "Our recently announced marketing relationship allows for certain members to 'match tiers' and receive the commensurate benefits in the partner program. M life Gold members and above can receive a Borgata Black Label card and Black Label members can receive an M life Gold card." Zanella added that the two companies "may announce future benefits as part of this marketing relationship," but did not specify what might be coming down the pike.
Boyd customers don’t get quite such a good deal, as B Connected point accruals aren’t recognized at Borgata. What Boyd will do, if you’re a premium player, is work through its hosts to comp your stay … and the reverse applies if you’re a big Borgata player coming to a Boyd property in Las Vegas.
