No Ho's in the Borgata

No Ho's in the Borgata
Family to sell 50% stake


In New Jersey, it's no's before Ho's.

MGM Mirage is selling its stake in the posh Atlantic City Borgata and leaving the state after the New Jersey Casino Control Commission ordered the company to give up its 50 percent stake in the casino or break away from its profitable casino partnership in Macau with members of the wealthy Ho family of Hong Kong.

State casino regulators claimed in an investigative report yesterday that the patriarch of the family, Stanley Ho, had links to organized crime elements in Macau.

His daughter, Pansy Ho, a partner in a joint ownership pact in Macau between MGM Mirage and MGM Grand Macau, got 90 percent of her money for the venture from her father, and thus is an "unsuitable partner" under New Jersey gaming rules, the report said.

MGM Mirage officials said the report "acknowledges there is no evidence that Pansy Ho has engaged in any wrongdoing or been accused of any illegal activity."

"Gaming regulators in the other jurisdictions where we operate casinos are well aware of this matter, had access to the same information as the New Jersey gaming regulators, and have all either determined that the company's relationship with Pansy Ho is appropriate or that further action was not necessary," said MGM Mirage Chairman and CEO Jim Murren.

MGM Mirage will have 30 months to sell its share of the Borgata, owned 50-50 with Boyd Gaming. Boyd has first rights to buy MGM's share. After a sale, MGM Mirage would be able to apply for another New Jersey license for other properties, the company said.

MGM Mirage shares slipped 4 cents to $12.26.

The casino commission's report quoted numerous sources, ranging from US government and regulatory agencies to a US Senate query. It also cited an investigative firm that MGM Mirage hired in 2001.

Ho and his daughter haven't been charged with or convicted of any crimes regarding their Asian casino operations.

The report said MGM Mirage's own private investigators told state authorities that "it is nearly impossible to be in the casino business in Macau at present without having associations with triad groups, or what is known as organized crime."

MGM Mirage insisted there was no taint in its deal since it "structured its business relationship with Pansy Ho to ensure the highest standards of operation and compliance with all applicable gaming laws and to protect against any improper influence. We have had a very positive working relationship with Pansy Ho and have a spotless operating record at MGM Grand Macau."