Conditions Placed On Borgata Casino’s License Renewal

Although the New Jersey Casino Control Commission has forced MGM Resort International, formerly MGM Mirage, to sell its 50% stake in the Borgata Resort to settle a dispute over the appropriateness of MGM’s joint venture partner in Macau, co-owner Boyd Gaming has been granted approval to continue to operate the Atlantic City gaming property.

The commission voted this week to approve a five year license renewal for Boyd Gaming, under the condition that the ownership issue of MGM Resort Internationals 50% interest will be worked out in the next two years.

“Through an unprecedented economic downturn and increased regional competition, Borgata has continued to demonstrate its ability to remain a strong competitor in Atlantic City,” said commission chairwoman Linda Kassekert.

The Borgata Hotel Casino & Spa has dominated the Atlantic City market since opening in 2003. Although only operating 17% of the city’s table game operations, the Borgata produces 20.4% of the city’s table game revenue and 34% of the markets food and beverage revenues.

“We remain optimistic about operating in Atlantic City and are very proud of the Borgata,” said Keith Smith, CEO of Boyd Gaming “Over the last five years, we’ve continued to improve the product and deliver a great experience, and we’ll continue to build on that over the next five years and maintain our No. 1 position in the market.”