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Best of Liz Benston

Gaming Guru

Liz Benston
 

Dubai World files for Nevada gaming license

9 April 2008

LAS VEGAS, Nevada -- The love affair between MGM Mirage and Dubai World is looking more like a lifelong commitment of marriage.

Dubai World, the government-owned conglomerate of the Arab state, has filed an application for a Nevada gaming license with the expectation of buying more than 10 percent of MGM Mirage's outstanding stock.

State law requires shareholders with a stake of more than 10 percent in a Nevada gaming company to submit to the same extensive background checks required of top casino executives.

The licensing process for major companies typically takes at least a year and costs millions of dollars for license applicants.

Dubai World has so far committed $5.1 billion for a 9.5 percent stake in MGM Mirage plus a half ownership of CityCenter.

CityCenter is owned by a joint venture formed by MGM Mirage and Dubai World last year. Both entities must receive separate gaming licenses to own and operate CityCenter before it opens.

MGM Mirage expects to receive a bonus of up to $100 million from Dubai World if the project, to be managed by MGM Mirage, is completed by late 2009 and opens within the company's budget, net of condo proceeds.

Dubai World files for Nevada gaming license is republished from Online.CasinoCity.com.