1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

First big step in MGM's return to Atlantic City

Discussion in 'Non-Vegas Hotels & Casinos' started by lithium78, Aug 23, 2014.

Thread Status:
Not open for further replies.
  1. lithium78

    lithium78 High-Roller

    Joined:
    Sep 8, 2013
    Messages:
    899
    Location:
    New Jersey
    Trips to Las Vegas:
    4
    MGM has settled a claim with the state of New Jersey as a prelude to reclaiming their gaming license in Atlantic City. If the license is granted -- and I don't see why it wouldn't at this point -- MGM would regain their 50% ownership of the Borgata. I wouldn't be surprised if they bought the Revel and renovated it. MGM's return is exactly what AC needs right now. They need bold and innovative casino operators to reinvent their city.

    http://www.pressofatlanticcity.com/communities/atlantic-city_pleasantville_brigantine/mgm-settles-claim-in-prelude-to-n-j-licensing-case/article_2ade68a8-2a4e-11e4-bd91-0019bb2963f4.html
     
  2. Snidely

    Snidely VIP Whale

    Joined:
    Nov 2, 2012
    Messages:
    1,977
    Trips to Las Vegas:
    20
    I think a lot has to do with player's points. We're sucked into Total Rewards because we can earn them in AC and use them in Vegas. If we could earn MLife points in AC, we'd be more inclined to leave the CZR world.
     
  3. bshowell

    bshowell VIP Whale

    Joined:
    Oct 3, 2004
    Messages:
    1,226
    Location:
    DMV
    Trips to Las Vegas:
    11
    I think they could do a lot with Revel. Maybe they're looking to finally expand an East Coast presence. They're due to start the build here at National Harbor soon.
     
  4. nostresshere

    nostresshere Mr. Anti Debit Card

    Joined:
    May 4, 2009
    Messages:
    11,139
    Location:
    TN
    Trips to Las Vegas:
    19
    50% owner by Boyd and 50% owned by MGM - which company becomes the "dominant" player is a bigger question. Players Club, marketing,etc.

    Could be very interesting. Maybe MGM sells it off and takes the money to buy Revel really cheap?
     
  5. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    4,713
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    14
    I think if they were interested in Revel, they would have had a stalking horse put in a bid by now. I don't think they will be reinstated in time to get it before it closes and If I am understanding NJ correctly, that means it can't reopen as a casino. They probably want to pick their players club connection back up and Boyd is probably still interested in getting out. If MGM is really interested in investing in AC, their next best move would probably be getting Borgata 100% over buying a casino the market can't support.
     
  6. Snidely

    Snidely VIP Whale

    Joined:
    Nov 2, 2012
    Messages:
    1,977
    Trips to Las Vegas:
    20
    If someone wants to buy Revel and operate as a casino, NJ laws will bend to allow it. There is still $2B a year in casino revenue in NJ to go after.
     
  7. broncofn

    broncofn VIP Whale

    Joined:
    Mar 16, 2013
    Messages:
    3,922
    Trips to Las Vegas:
    60
    I believe i have said before that mgm would be the best fit for Revel.

    Maybe the propery wasnt bought by "coincedence"? Mgm would do well at the Revel property if the do take it over. It would bring a sparkle back to the boardwalk area and will legimately compete with Borgata.

    But what would that do to the marina area if it happened?
     
  8. undathesea

    undathesea Grandissimo

    Joined:
    Feb 26, 2013
    Messages:
    1,664
    Location:
    Washington D.C.
    Trips to Las Vegas:
    20
    Maybe I'm cynical, but why would MGM buy a casino in a failing market that is overpopulated with failing casinos?

    I think when NJ and Atlantic City start investing in Atlantic City and clean up the place, it may be a viable market.

    From DC area, you have to pay about $20-25 in tolls each way. Not only that, but the trip takes over 3.5 hours because there's no direct shot. There's a toll bridge coming in from Philly for points West. Points North have to take the Garden State Parkway which is another toll road. Make the tolls in NJ go away... that would be a good start to making it more acceptable. Increase the speed limit on those roads and quit give so many tickets to people on the AC expressway and GSP.

    The local trains from Philly aren't a good solution either. They're old and take forever... not as bad as driving though.

    I can't comment on the airport but it seems they have very few carriers fly in there and it's not very cheap to fly there.

    There are too many other options nearby (including an MGM going into the National Harbor close to DC) that make AC as a destination city pretty undesirable. With more options in Northern Maryland, West Virginia, and casinos in Pennsylvania, AC is basically on its own island hard to get to, not very clean or safe, and doesn't really offer much more than people can get locally.

    I don't think many people are going to invest in AC until AC starts investing in itself.
     
  9. bdautch

    bdautch High-Roller

    Joined:
    Jul 13, 2013
    Messages:
    512
    Trips to Las Vegas:
    24
    Great point about DC. I'll be taking a train from Union Station to Penn Station in Baltimore for $14 round trip once the Horseshoe Baltimore is open (have a trip planned there for late September). If I can get comped by one of the CET Hotel Partners, I'll literally never bother to go to Atlantic City again. It's too far, the drive is annoying, the tolls and gas add up, and it's not an enticing town. I'd rather spend the weekend on the Inner Harbor for next to nothing. There must be others who will divorce from AC in favor of some given area that's closer and more desirable.
     
  10. hammie

    hammie VIP Whale

    Joined:
    Sep 18, 2006
    Messages:
    2,380
    Trips to Las Vegas:
    5
    How does the Borgata consistently make money and come out on top each month? Boyd/MGM partnership invests to keep the property in great condition, not the municipal or state Government. One of the big failures is the inability to attract scheduled air service, only recently was management of the airport turned over to the Port Authority of NYNJ. Maybe this is how they attracted United Airlines? Or maybe they subsidized the landing fees.

    So you have no problem with the tolls for the Baltimore tunnel ($5 or so), the $5 northbound toll in MD at the Susquehanna river, the $3 toll in Delaware, the $4-5 one way toll on the Delaware Memorial Bridge? The $3.75 toll on the Atlantic City Expressway is the problem? No one gets pulled over doing 75 or less. Keep it on cruise control and arrive alive.


    By the way, the Inner Harbor is no box of chocolates, I took my wife and kids to the Aquarium a few years ago and frequently was approached by beggars, twice by the same crack ho.
     
  11. undathesea

    undathesea Grandissimo

    Joined:
    Feb 26, 2013
    Messages:
    1,664
    Location:
    Washington D.C.
    Trips to Las Vegas:
    20
    I didn't say there isn't room for a casino to make money in AC. It's just overpopulated with casinos right now. Most of them failing. And, as more and more casinos open outside of New Jersey, they'll continue to steal customers from AC. If Atlantic City cleaned up the city a bit... it would be a more attractive destination. AC was the only game on the East Coast forever and now that they have competition they aren't responding to it.

    Nope. All the tolls plus gas and mileage are the problem. But, with a city like AC that's on life support right now, why wouldn't the state lift all of the tolls to get to the city? I mean, if I'm coming from Philly and have to pay about $4/each way plus the Walt Whitman bridge toll and gas, all the state troopers pulling people over on the AC Expwy, I might choose to just hang out at Harrahs Philadelphia instead rather than dealing with all of it.
     
  12. bdautch

    bdautch High-Roller

    Joined:
    Jul 13, 2013
    Messages:
    512
    Trips to Las Vegas:
    24
    By the way, the Inner Harbor is no box of chocolates, I took my wife and kids to the Aquarium a few years ago and frequently was approached by beggars, twice by the same crack ho.[/QUOTE]

    I don't personally care about that. That's life in many cities. I just walk on and ignore them.
     
  13. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    4,713
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    14
    It could compete with Borgata, MGM would benefit with it staying closed. Otherwise the two properties will cannibalize the same customer base. AC can't support all these casinos. Period. Otherwise Revel would have been snapped up by now. There are enough smart people in the gaming industry with the capital who keep passing on AC. Once things settle with the closings coming, we'll see if that stabilizes things.
     
  14. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

    Joined:
    Nov 2, 2001
    Messages:
    12,931
    Location:
    Tennessee
    Trips to Las Vegas:
    37
    Two words. Online gaming.

    I'm not sure if the arrangement they have with Boyd at Borgata would allow them to install the servers to open up their own NJ online gaming site, but, if they purchase Revel or one of the other failed casinos at a song, it might be worth reopening one of those casinos. Ideally, Revel is the one with the least work that would need to be done overall, but I could see MGM taking over Revel and getting their Hakkasan and celebrity chef business partners to copy some of the things they have had success with in Vegas in AC. Throw in the online gaming site and it could be a wise investment, plus steal some thunder from Caesar.

    As for why they didn't have a bid in earlier? They weren't allowed into the state because of their lack of a gaming license. Throw into the fact (and let's not get this going down the political slope) that, if the casino closes and all of those people are laid off, the union contracts end and every one of those former employees goes back to square one on the pay scale if they were hired on by MGM. Plus, I'm willing to bet the price that would be accepted is now lower than it would have been in the bidding process. They may not have planned it this way, but, if I was them, these would be the reason I would call up my Dubai business partners and say "Got $250 Million you can loan us?"

    I can't see Boyd giving up their share of Borgata either, but I also can't see them buying MGM out of their share. They already had that chance and passed.
     
  15. broncofn

    broncofn VIP Whale

    Joined:
    Mar 16, 2013
    Messages:
    3,922
    Trips to Las Vegas:
    60
    Yes it would compete with Borgata if MGM took it over. But I also asked what would happen in the marina district if basically only Borgata and MGM/Revel had the clientele.

    It would not help the GN and Harrahs which I believe are doing well (more Harrahs than GN).

    It is basically a catch 22. I would love MGM to come into AC as they are coming here close to home at natl harbor but would hate AC to keep going down the drain.

    As much as ppl say they would rather go to their local casinos instead of driving to ac, I am one of the ppl who would rather go to ac for a weekend to enjoy the restaurants, bars, nice rooms etc instead of going to my local casinos for a few hours.

    I look at AC as a getaway from home for a few days instead of just a gambling destination.
     
  16. lotso-bear

    lotso-bear VIP Whale

    Joined:
    Jan 21, 2013
    Messages:
    1,215
    Trips to Las Vegas:
    111
    Personally, I'm worried for MGM if they decide to operate in AC. I don't think they should come into this market, regardless of their experience in the industry.
     
  17. ant1433

    ant1433 Low-Roller

    Joined:
    Sep 5, 2005
    Messages:
    196
    Location:
    nj
    I live in NJ and go to AC a lot( a little to much sometimes!!!) Like a previous poster I switched to CET to use my comp dollares in Vegas, Used to be able to earn comps at Borg and use in Vegas.loved it. Then I went CET. Still works and have never really had a problem and I am Diamond and always get Augustus tower at CP comped.
    I thought the main problem with MGM and NJCCC was Stanley and Mimsy HO..allegedly Chinese mafia connections. If they are out of the picture the NJCCC should aprove MGM.
    They would be a much welcome addition even if it is 50/50 with Borgata or they go after the Revel. Also heard that Hard Rock wanted Revel, but no offers as of yet.
    AC will survive with so much compettion I think MGM would get the customers that were supposed to come back with Revel.
     
Thread Status:
Not open for further replies.