MGM Resorts International Primed for a Bright Future
Bright days are in store for MGM Resorts International according to a recent piece in the Las Vegas Review-Journal by Howard Stutz. That’s because the company has numerous developments looming on the horizon including two potential gaming complexes in the Northeast, $3 billion in developments in Macau and Las Vegas, and the possibility that they’ll regain their 50 percent ownership stake in the Borgata.
J.P. Morgan gaming analyst Joe Greff offered a research note that highlighted MGM Resorts International’s “fresh ideas” for stock investors. Those ideas include receiving a licensing recommendation for a $925 million resort on the outskirts of Washington, D.C., at National Harbor, Maryland, which sits less than 11 miles away from the White House. Likewise, MGM Resorts has plans for an $800 million hotel-casino in Springfield, Mass. However, both of these projects are still subject to regulatory approval and wouldn’t be operational until 2017.
Some other MGM projects that are slated to be completed before then is a $2.6 billion development in Macau — scheduled to open in early 2016 – and a $100 million outdoor retail, dining and entertainment district in Las Vegas expected to be completed later this year between New York-New York and Monte Carlo. Then, the latter project is expected to lead into a planned $350 million sports and entertainment arena in 2016.
The proposed 20,000-seat arena would be built in partnership with Los Angeles AEG. Populous, an architectural firm that specializes in the design of sports facilities and convention center, won the bid for designing the proposed arena.
Chris Carver, Populous senior principal, said, “The new MGM-AEG arena in Las Vegas will provide the nation’s pre-eminent entertainment destination with a world-class venue that will redefine amenities and premium offerings tailored to the demanding Las Vegas market.”
MGM Resorts International chief executive Jim Murren, who will take over chairmanship of the American Gaming Association, previously said in a statement, “The combination of MGM and AEG, along with the excellent Las Vegas Strip location, is already driving interest from potential investors in this exciting new development.”
Finally, MGM Resorts, which reached a settlement with New Jersey regulators back in 2010 to sell 50 percent ownership stake in the Borgata, has a chance to regain its New Jersey license as the state rethinks the settlement. With that would come $110 million that has been held in trust since 2010, as well as a stake in the recently regulated online gaming market. A decision on the matter is expected within the next three months.
For more information, check out Howard Stutz's piece in the Las Vegas Review-Journal.
*Lead photo by Steve Tetreault, Stephens Washington Bureau.