MGM Mirage seeks to divest from Borgata in NJ

Page Last Updated: Monday February 8, 2010 12:18pm PST

Casino operator MGM Mirage is hoping to settle questions raised by New Jersey regulators over its ties to a controversial Chinese casino family by putting its stake in an Atlantic City casino into a trust.

MGM Mirage said Monday it is talking with its lenders and New Jersey regulators about its proposal to put its stake in the Borgata Hotel Casino & Spa into a divestiture trust.

In effect, the move would mean MGM Mirage, which is based in Las Vegas, stops directly doing business in the state.

New Jersey regulators are concerned about Pansy Ho, MGM Mirage's joint venture partner in Macau. Her father, Stanley Ho, has been accused of ties to Asian organized crime gangs but never charged.

He denies any crime ties.

The Borgata, which MGM Mirage owns jointly with Boyd Gaming Corp., is not connected to the Ho family.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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