MGM Resorts International has sold its land under the Borgata Hotel Casino & Spa in Atlantic City to Vornado Realty Trust and Geyser Holdings for 46.9 million pounds. The sale is part of the withdrawal of the company from Atlantic City because of ties with the daughter of a Chinese Mafia boss.

The sale covers just over 11 acres and involves the leasehold and the land on which part of the Borgata sits. The casino operator has sold half of the shares in the Borgata due to an ultimatum from the casino regulators in New Jersey. The ultimatum that was given was to sell half of their shares of Atlantic City’s best casino, or break all contacts with Pansy Ho. Pansy Ho is the business partner of MGM in the Asian casino gambling Mecca, Macau. She owns 50% of the MGM Grand Macua.

The father of Pansy Ho, Stanley Ho has long been accused of connections with the Chinese organized crime. But he denies this and MGM decided to maintain their relationship with Ho and to withdraw from AC. The New Jersey Division of Gaming Enforcement, the gaming authority for New Jersey released a report in May 2009 containing the allegations. “Considered the father of modern gambling in China, Ho lets criminal gangs operate and thrive inside his casino. We found that Pansy Ho, his daughter, is dependent on him and his money and remains under his influence.” Said the New Jersey Division of Gambling Enforcement.

The casino gambling authority determined that Pansy Ho is an unsuitable business partner of MGM in Macau. MGM said to have done nothing wrong, and they have a flawless history in exploiting the MGM Grand Macau with Pansy Ho. The sales of MGM land covers only a part of the land of MGM in AC and not the property of Borgata itself. MGM Resorts property after the sale is still 85 acres of land in AC which was not involved in the sale, approximately 70 acres lies next to the Borgata. The sale of the land still needs to be inspected by the New Jersey’s Casino Control Commission and the Division of Gaming Enforcement. MGM is still looking for a buyer for half of the seven years old Borgata hotel and casino.