Still in the running in Singapore, a hotel-casino under construction in Macau, The Signature development at MGM Grand plus its CityCenter project on the Las Vegas Strip, and plans for VLTs at New York’s Aqueduct racetrack - and MGM Mirage has no intention of stopping there. The costs may have risen for Project CityCenter, up by US$2 billion from last September’s estimated US$5 billion, but now the company is considering a similar development with hotel casino, condominiums, retail and entertainment venues in Atlantic City.

The CityCenter in Las Vegas is not yet being built and is not scheduled to open until 2009, but two towers to be completed later this year at The Signature sold out during construction. A decision on an Atlantic City development on its 55-acre plot next to the Borgata - a CityCenter East - is not expected until some time after CityCenter Las Vegas opens.

In Singapore MGM Mirage is in partnership with CapitaLand, one of the largest listed property companies in Asia. Celebrity chefs and famous interior designers are just part of the plans to offer Singapore something innovative and exciting for its Marina Bay integrated resort. The Singapore government is seeking the ‘wow’ factor, and bid submissions will be judged on contribution to tourism (40%), architectural concept and design (30%), development investment (20%) and strength of companies in the consortium (10%). Deadline for the bids is 29 March 2006.

The 600-room MGM Grand Macau will open next year as a 50:50 joint venture with Pansy Ho, and MGM Mirage has filed an application in Nevada to seek state approval of its partner. Pansy Ho is the eldest daughter of the billionaire Stanley Ho, the Macau gaming magnate, and the sub concession granted to Pansy Ho by the Macau government comes from Stanley Ho’s casino concession. Although she does not need a Nevada gaming licence, Pansy Ho can be considered by the Nevada Gaming Control Board for suitability. MGM Mirage has also filed an application of suitability in Nevada for the New York Racing Association, its partner in the project at the Aqueduct.

MGM Mirage became the world’s second largest casino operator, after Harrah’s Entertainment, when it acquired Caesars Entertainment last year. CEO Terry Lanni estimates that cost savings and revenue gains from the acquisition would total around US$175 million annually. MGM’s 50% share of profits on the first two The Signature towers are expected to be US$105 million, with an additional US$100 million for the third. The Marina Bay project will not have such immediate returns – the company would hope to break even in 10 years on the US$3 billion casino resort. (E-02.13.06)

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