Skip to main content

Updated from 5:05 p.m. EDT

The New Jersey Division of Gaming Enforcement is recommending that

MGM Mirage

(MGM) - Get MGM Resorts International Report

not associate with its current joint venture partner in Macau, China.

The company announced the findings in a

Securities and Exchange Commission

filing. The state report is confidential, but MGM Mirage disclosed the report's conclusions.

MGM's 50% partner in Macau is Pansy Ho, the daughter of Hong Kong billionaire Stanley Ho, who has been alleged to have ties to Chinese organized crime.

MGM said that the New Jersey panel recommended Pansy Ho "be found to be unsuitable" and that it should "disengage itself from any business association" with the partner.

"The DGE is responsible for investigating licensees and prosecuting matters before the New Jersey

Casino Control Commission," the filing said. "However, the report is merely a recommendation and is not binding on the New Jersey Commission, which has sole responsibility and authority for deciding all regulatory and licensing matters. The New Jersey Commission has not yet taken any action with respect to the report, including whether or when a hearing should be scheduled."

The findings are relevant because New Jersey licenses the fashionable Borgata casino in Atlantic City, which is jointly owned by MGM Mirage and

Boyd Gaming

(BYD) - Get Boyd Gaming Corporation Report


Scroll to Continue

TheStreet Recommends

Pansy Ho, MGM Mirage's partner in Macao

Pansy Ho, found suitable by Nevada gaming regulators in 2007, has a subconcession for the MGM Grand Macau, the

Las Vegas Review-Journal


The Associated Press

said an e-mail seeking comment that was sent to Ho's company in Hong Kong was not immediately answered.

JPMorgan gaming analyst Joseph Greff had questions in a note issued today.

"Does that mean MGM will sell its 50 percent joint venture interest in MGM Grand Macau, keep Macau and sell Borgata

in Atlantic City so that MGM has Macau market exposure?" he wrote. "Will MGM be required to do nothing and hope that other state gaming regulators do not act on it?"

Greff still has an overweight rating on Las Vegas-based MGM, which recently raised $2.5 billion in a bond and stock offering. MGM Mirage said Tuesday it received the proceeds of those offerings, which will go toward the company's $14 billion in debt.

Billionaire investor Kirk Kerkorian bought 14.3 million more shares in MGM Mirage on Tuesday, but it wasn't enough to keep his majority stake as MGM issued new stock, regulatory filings show.

Kerkorian paid about $100 million for his portion of the 164.5 million new shares MGM Mirage issued, according to a filing he made with the

Securities and Exchange Commission

. His 163.1 million shares equal 38.9% of the outstanding stock, down from 53.85%.

MGM shares closed down 4.6% to $8.34 on Monday. Boyd Gaming was down 0.1% to $10.68.

Elsewhere in the casino space,

Las Vegas Sands

(LVS) - Get Las Vegas Sands Corp. Report

was down 2.8% to $10.01.

Wynn Entertainment

(WYNN) - Get Wynn Resorts, Limited Report

was down 3.3% to $40.05.

Penn National Gaming

(PENN) - Get Penn National Gaming, Inc. Report

was down 0.7% to $31.86.

Ameristar Casinos


was up 0.9% to $20.24.

Isle of Capri Casinos


was up 0.2% to $12.76.

Melco Crown Entertainment


was up down 0.3% to $5.75.

Pinnacle Entertainment

(PNK) - Get Pinnacle Entertainment Inc Report

was down 3.8% to $11.61.

Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.