October 22, 2007
And who else does it help?
Analysis of:
BOARDWALK BOUND:- MGM MIRAGE PLANS ATLANTIC CITY'S LARGEST HOTEL/CASINO PROJECT | www.lvrj.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: MGM coming to Atlantic City, sort of finishes the trifecta. You have Pinnacle building on the Sands site, Revel Entertainment on a site near the Showboat and MGM now planning to build next to the Borgota.
Analysis: For MGM, this really makes sense, they will be in a "winning" neighborhood, on a huge site, with a mega property of 3,000 rooms. With its location, MGM will help the Borgota and Harrah's Marina to dominate the AC market. Revel and Pinnacle will aid the boardwalk properties by buiding casinos with a large amount of guest rooms which are sorely needed. These 3 properties should help grow the AC market after, what will be several years of stagnant revenues due to Pennsylvania slot parlor participation in AC revenues. I appreciate, Dan Lee of Pinnacle being so gracious as to "thank "MGM for finally coming to Atlantic City, but they will set the standard for the new Atlantic City, not Pinnacle or Revel. A standard that may well send Columbia Sussex (the Tropicana) and Trumps 3 properties heading for the hills or the poorhouse. MGM is a great operator and will bring sanity and stabilty to this Gaming market....
Analysis: For MGM, this really makes sense, they will be in a "winning" neighborhood, on a huge site, with a mega property of 3,000 rooms. With its location, MGM will help the Borgota and Harrah's Marina to dominate the AC market. Revel and Pinnacle will aid the boardwalk properties by buiding casinos with a large amount of guest rooms which are sorely needed. These 3 properties should help grow the AC market after, what will be several years of stagnant revenues due to Pennsylvania slot parlor participation in AC revenues. I appreciate, Dan Lee of Pinnacle being so gracious as to "thank "MGM for finally coming to Atlantic City, but they will set the standard for the new Atlantic City, not Pinnacle or Revel. A standard that may well send Columbia Sussex (the Tropicana) and Trumps 3 properties heading for the hills or the poorhouse. MGM is a great operator and will bring sanity and stabilty to this Gaming market....
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