MGM Bets on Atlantic City

"Our company has carefully considered the possibilities for our landholdings in Atlantic City," said Terry Lanni, chairman and CEO of MGM, in a statement. "We believe the success at Borgata demonstrates the eagerness for further evolution of the nation's second-largest gaming market. We will continue to raise the bar, and by doing so, hope to re-energize the city's resort offerings and attract a new market of affluent East Coast customers. We believe our new resort will generate very healthy returns for our shareholders."

About 60 acres of the site will be used for construction of MGM Grand Atlantic City, with 12 acres reserved for future development, which may include a residential component, the company said. MGM also owns an additional 14-acre site in the Marina District.

The company said it intends to file for government approval for the new casino later this year or in early 2008. Groundbreaking is expected in 2008, with an anticipated opening in 2012.

Shares of MGM were down 84 cents, or 0.8%, to $98.91 early Wednesday.