MGM projects on hold

MGM Mirage, the world’s second-largest casino operator, said it would delay projects in Atlantic City and Las Vegas amid the global credit crisis and said third-quarter profit fell 67% as business slumped on the Strip.
The Toronto Star said the casino company has postponed development work for the MGM Grand Atlantic City project.
“Current economic conditions and the impact of the credit market environment have caused the company to reassess timing for the project,” it quoted MGM as saying in a statement.
MGM also agreed with joint venture partners Kerzner International and Istithmar to put the development of a new resort on the Las Vegas Strip on hold. The company operates the Bellagio, Mandalay Bay and Circus Circus.
A Reuters report quoted Gabelli and Co. analyst Amit Kapoor as saying that other casino operators, particularly Sands, were likely to postpone or scale back on projects under development.
The report said officials at Sands did not return a call seeking comment. Sands is involved in Macau’s mega gaming project and is also involved in one being built in Singapore. Reports have surfaced recently regarding likely delays in both projects.

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