ATLANTIC CITY NEEDS THE MGM MIRAGE - THEY HAVE THE ALL THE EXPERTISE TO MAKE THIS DEVELOPMENT WORK

Implications: There should be no doubt in anyone's mind that the entrance of MGM Mirage on the Atlantic City coast line can only be a big boost for business. Even though they are partnered with Boyd Gaming Group at the Borgata, they will make a substantial impact on this area with a City Center type project. I think there is terrific potential for this type of hotel/casino - they can only be a positive entry into this market arena. 

Analysis: It should be no surprise to the gaming industry that MGM Mirage is interested in expanding their interest in the Atlantic City market. I can remember that not so long ago Steve Wynn said that under no circumstance would he want to get back in this gaming area. Guess what? He has been professing his desire to build a Wynn Resort casino on the sight of the old Bader Field. This was an airfield that catered mostly to small planes and adverting double wingers that AC was so famous for years ago. The only thing that could be a factor in the type of property that MGM will actually build could be what happens in Pennsylvania if full blown gaming arrives there. I don't think that there is any problem with the thought of the Pittsburgh area going full blow. Philadelphia, on the other hand is a completely different matter. Since AC has be relying on day trip business forever and Philly being a great source of that business - having full sanctioned gaming in this city could be a direct loss of income for AC. It certainly remains to seen how MGM is going to market their new development, however, the day business will be needed to help their bottom line also. just like the other hotels.

Here is my take on the prospects for MGM - They are a solid company with vast experience in the hotel and gaming business. Their people are tops in the industry and  will certainly be up to this challenge. My concern is the daily revenue that comes from Philly, New York, Delaware and other near by states. Will this eventually dry up with the entrance of these states looking for their own interests in gaming and the revenue it will provide for their states. It's an issue that must be resolved  for the Atlantic City gaming companies. There is really no time to waste on seeing what might happen - things will happen and they need to be prepared well in advance...................