MGM’s comeback; Packer’s presumption

MGM Resorts International is feeling optimistic about getting back into Atlantic City (at a time when so many are getting out), to the point of talking about it publicly. “Borgata continues to be the market leader. We’re pretty excited to be able to regain our seat in the partnership,” said CFO Dan D’Arrigo. The company has good reason to be optimistic. PokerStars seems a cinch for New Jersey licensure now that the company’s “bad actors” have been expunged. Similar MGM figures who were engaged in sub rosa negotiations with Stanley Ho are long departed and Macao partner Pansy Ho has been reduced to a minority role. It’s time for New Jersey to let bygones be bygones.

Since it never sold its half of Borgata, MGM has a burgeoning trust fund of withheld revenue it can tap once it receives absolution from the Division of Gaming Enforcement. The latter will be issuing a recommendation to the New Jersey Casino Control Commission by the end of August and one would be very much surprised if it’s negative. While many are bailing on Atlantic City right now, MGM can rest secure in the knowledge that it’s got the one sure fortress in any storm.

* And there were fewer. New York State has one less casino applicant in the Capital Region. The team of Clairvest Group and Great Canadian Gaming thought they were pretty special, to the point of asking for a 60-day extension on their application. Given the high level of compliance among their rivals, that wasn’t on. What Clairvest and Great Canadian did submit was wildly unresponsive to state requirements, so it’s no surprise that they got the bum’s rush. This still leaves four applicants for an Albany-area casino, so Clairvest and Great Canadian are unlikely to be missed.

* In the interest of drawing greater foreign investment, the government of South Korea is lightening up on the requirements for casino megaresorts. “Asian nations such as Macao and Singapore are competitively building global resort complexes to attract foreign tourists, but South Korea has fallen behind in building world-class casinos,” lamented the Ministry of Tourism. The latter must balance its fear of domestic gaming addiction with its desire for Chinese tourist money.

Among the initiatives being taken is an open bidding process “to give a preliminary approval for establishment of integrated resorts.” A Caesars Entertainment/Lippo Group $700 million megaresort near Inchon is being encouraged as part of this process. That’s a fraction of what Genting is preparing to spend on a Jeju Island megaresort of its own. In return for 8.8 billion Won in investment, the government expects to recoup nearly that amount a year in tourist spending, to say nothing of job creation.

* The ink is scarcely dry on James Packer‘s purchase of the New Frontier site and already his casino team is boasting of its superior acumen. Crown Resorts Vice President for Strategy & Design Todd Nisbet said there was “room for improvement” in the Las Vegas casino experience. Perhaps he’s not seen some of the resorts that have opened since 2007. History tells us that such presumption is usually rewarded with a kick in the pants.