MGM picks reputed China crime family over N.J.

MGM picks reputed China crime family over N.J.

ATLANTIC CITY, N.J. -- Faced with cutting its ties to an alleged organized-crime family in China or a selling its interest in an Atlantic City casino, MGM Resorts International is saying goodbye to New Jersey.

On Thursday, MGM closed a $73 million sale of its land under Atlantic City's Borgata Hotel Casino & Spa to Vornado Realty Trust and Geyser Holdings.

MGM is selling its half ownership in the Borgata to an unidentified bidder for more than $250 million.

The company acted after an ultimatum from New Jersey casino regulators that it sell its stake in Atlantic City's top casino or cut ties with Pansy Ho, its partner in a casino in the Chinese enclave of Macau.

Ho's father, Stanley Ho, has long been accused of ties to Chinese organized crime, which he denies. MGM chose to keep its relationship with Ho and walk away from the Borgata.

Considered the father of modern gambling in China, Stanley Ho lets criminal gangs "operate and thrive" inside his casinos, the New Jersey Division of Gaming Enforcement said in a report issued to the casino in May 2009 and made public last March. The division found that Pansy Ho, his daughter, is dependent on him and his money and remains under his influence.

The regulators concluded that Pansy Ho is an "unsuitable" business partner of MGM in Macau.

The company admits no wrongdoing and says it has a "spotless record" operating the MGM Grand Macau with Pansy Ho.