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Inside Gaming Column: Zounds! Project Z Zooming Ahead

Project Z, the brainchild of Mandalay Resort Group President Glenn Schaeffer, is alive and well despite the MGM Mirage buyout and a freeze on capital expenditures by Mandalay. County planners and company executives say planning for what is likely to be the next major megaresort developed on the Strip is proceeding full-speed ahead. MGM Mirage President Jim Murren said he is interested in reviewing the plans, especially since the idea behind the $7.9 billion merger is "to create a better platform for the future development of Las Vegas."

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Meanwhile, MGM Mirage may face some stumbling blocks with its long-anticipated agreement to develop a joint venture casino in Macau with Pansy Ho Chiu-king, daughter of Macau casino boss Stanley Ho. The casino will bear the MGM Grand brand and Wall Street is putting the price tag at about $600 million. Analysts said the biggest hurdle will be objections from state regulators in this country who will challenge the joint-venture nature of the project -- and the partners involved.

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Macau casino magnate Stanley Ho and his family came in for real heat last week from the Far Eastern Economic Review. It published an investigation into allegations of blackmail, money laundering and fraud involving Hong Kong's "first aristocratic family" that could threaten Asia's biggest gambling empire. Officials are said to be worried that the family's dirty linen could not only bring down Ho, but could undermine efforts to liberalize casino operations and market the former Portuguese colony to more family-friendly visitors.

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On the home front, real estate developers say one likely byproduct of the MGM Mirage-Mandalay Resort Group merger will be an added 15,000- to 18,000-seat arena. Gaming industry experts said the merger will put real pressure on Caesars Entertainment and Harrah's Entertainment to match MGM Mirage products. That means Caesars needs to add an arena, behind Caesars Palace or in back of Bally's and Paris Las Vegas. It also means Harrah's President Gary Loveman needs to deliver on his commitment to build or buy a Strip megaresort. More to come.

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John Snow, secretary of the U.S. Department of the Treasury, touched off a minor debate when he promised to launch the new $100 bill here in Las Vegas next May as part of the commemoration of the city's centennial. He also asked a meeting of about 25 local business bosses whose face they want on the new bill. Their favorite seems to be Mayor Oscar Goodman, even though we suspect Oscar's the brunt of the same kind of a joke Snow intended when he opened the floor to nominations.

The Inside Gaming column is compiled by Gaming Wire Editor Rod Smith. You can contact him by phone at (702) 477-3893, fax (702) 387-5243 or e-mail at rsmith@reviewjournal.com.

Copyright GamingWire. All rights reserved.

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