MGM and Wynn preparing for Mass. suitability hearing

MGM Resorts and Wynn Resorts' Macau business under question as Massachusetts suitability hearing looms

American gambling news - GamingZion

American gambling news is hotly anticipating news from the MGM Resorts International and Wynn Resorts suitability hearing on December 16 in Massachusetts. The state Gaming Commission will conduct the hearing to look into the two casino giants’ business deals in Macau.

Both casino giants have already gained approval of their host communities in Massachusetts, so this meeting is expected to go a long way to deciding the destination of 2 of the three casino licenses available in the state.

The hearing for MGM might turn into a repetition of their New Jersey fiasco. In 2010 regulators proclaimed the partnership with Pansy Ho, daughter of Stanley Ho (a gambling titan), as “unsuitable”. Therefore, constricted by American gambling laws, MGM invested its pledge in an Atlantic City casino.

Macau has become a hot topic for US regulators after overtaking Las Vegas as the world’s premier gambling hub. Regulators are worried that US companies in the Chinese region are violating the Foreign Corrupt Practices Act.

This is one of the primary reasons for the hearing, as the Massachusetts Gaming Commission tries to guarantee that both casino resorts are not performing any illegal practices. Considering US policy when it comes to major Chinese companies, however, it’s more likely to be about protectionism.

The Commission is taking its role seriously, since MGM and Wynn are the first two companies that managed to win approval from their host communities. Therefore, the background checks that were performed on the two popular casinos were extremely thorough.

The two operators seem to be confident in the honesty of their past and current businesses and expressed their positive outcome expectations, regarding the suitability hearing.

With online and mobile casinos gradually coming to the US – Nevada, New Jersey and Delaware have so far launched online gambling services, with mobile set to follow next year – this is an important time for land-based casinos in many states.

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