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MGM > SEC Filings for MGM > Form 8-K on 31-Jul-2009All Recent SEC Filings

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Form 8-K for MGM MIRAGE


31-Jul-2009

Other Events


Item 8.01 Other Events.
As previously reported by MGM MIRAGE (the "Company") on its Current Report on Form 8-K with a filing date of May 19, 2009 (the "Prior Report"), in the June 2005 report of the New Jersey Division of Gaming Enforcement (the "DGE") to the New Jersey Casino Control Commission (the "New Jersey Commission") regarding the application of Borgata for renewal of its casino license, the DGE stated that it was conducting an investigation of the relationship of the Company with its joint venture partner in Macau and that it would report any material information to the New Jersey Commission it deemed appropriate.
Also, as previously reported in the Prior Report, on May 18, 2009, the DGE issued a report to the New Jersey Commission on its investigation. While the report itself is confidential, at the conclusion of the report, the DGE recommended, among other things, that: (i) the Company's joint venture partner in Macau be found to be unsuitable; (ii) the Company be directed to disengage itself from any business association with its joint venture partner in Macau;
(iii) the Company's due diligence/compliance efforts be found to be deficient; and (iv) the New Jersey Commission hold a hearing to address the report. In furtherance of its request that the New Jersey Commission hold a hearing to address the report, on July 27, 2009, the DGE filed a letter with the New Jersey Commission requesting that it reopen the 2005 casino license renewal hearing for Borgata pursuant to applicable New Jersey law. New Jersey law requires that the casino licensing hearings be reopened at the request of the DGE. As a result, the New Jersey Commission will hold an evidentiary hearing on the allegations contained in the report at which time the Company will be able to present evidence and legal argument. There can be no assurance that the outcome of the proceedings will not have a material adverse effect on the Company.


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