What is Gaming Law and how consistent are the governing bodies in applying the law across institutions, gaming venues (on-line gaming or casino resort) and local, state and international borders?

What demographic, economic, and social issues must be considered when planning a new project or expanding an existing casino resort?

What is the mission of a casino planning commission and how can your company best align your needs to the needs of the planning commission?

Can the rulings of a casino planning commission be appealed?  How intensive is the process and what can be done to enhance your chances of success?

"Helping to Transform Atlantic City from a Day Trip Market to a Destination Resort"

Borgata Hotel Casino & Spa

 

Situation

In the early 1990's, Boyd Gaming was a successful gaming company based in Las Vegas that did not own or operate any casinos outside of Nevada.  The company realized its future depended upon placing smart bets to expand its footprint and build its brand.  After opening several casinos in its central region, the journey continued in 1996 when the company entered into a joint venture with Mirage Resorts (now MGM Mirage) to develop a casino resort on a thirty acre tract of land in Atlantic City.  The selected site was a former municipal landfill that was burdened with environmental issues, access problems, and a negative image of Atlantic City.  Boyd Gaming, on behalf of its joint venture, wished to fast track the project and also to favorably assimilate itself into the Atlantic City regional community as a means of becoming a good corporate citizen as Boyd had successfully accomplished in other communities in which it operates casinos.

Historically, Atlantic City was viewed as a low end slots and day trip market where most revenues were generated on the casino floor.  If successful, this venture would benefit Boyd Gaming and MGM Mirage and help transform Atlantic City into a true destination resort.

Solution

Former Atlantic City lifeguard and current Fox Rothschild partner, Jack Plackter, was selected to participate on Borgata's strategic team for this high-risk, high-reward business venture.  Jack grew up in the community where he works today, and through Fox Rothschild’s local Atlantic City office, he became involved in local real estate development.

Utilizing this experience, Jack was able to leverage Fox Rothschild’s firm-wide resources and his strong ties to the community in order to assist Borgata's development team to navitage through the challenges involved in a project of this magnitude.  Jack also assisted Borgata in its desire to become involved in the local community via initiatives that addressed local concerns.  For instance, Borgata undertook a program designed to provide job training for 2,000 local residents who were unemployed or underemployed.  Boyd, on behalf of the joint venture, also focused on the positive aspects of transforming a landfill into a state of the art destination resort.

Results

Borgata was the first new hotel property to come to Atlantic City in thirteen years and its successful opening in 2003 sparked a renaissance in the Atlantic City marketplace. Since then, Borgata has opened a $200M expansion and is currently constructing a $400M, 800 room hotel tower to be known as the Water Club, scheduled to open in early 2008.  Jack also assisted in Borgata's expansion projects.

Borgata now employs approximately 6,500 employees and will hire more once the Water Club hotel tower opens.  The cost of the entire project will be approximately $1.7B when completed.  Borgata now enjoys tremendous popularity, near full-capacity occupancy rate, and has consistently been the top-grossing casino hotel in Atlantic City.

Fox Rothschild helped Boyd Gaming and Borgata achieve their goals on many levels. It utilized large-firm resources to skillfully handle a variety of legal matters related to the development project. It provided top-notch service by listening to the client’s needs, understanding the client’s business and industry, and was accessible to do whatever was necessary to assist with the successful completion of the project.

Experience

Boyd Gaming, on behalf of the joint venture, wanted to expand its footprint, build its brand and create a unique experience in the gaming industry by building Borgata in Atlantic City. Fox Rothschild’s experience and relationships in the community helped Boyd Gaming and Borgata achieve those objectives.