I wonder if Dr. Sugerman thought he’d be on the Board of Directors of The MGM Mirage when he was doing his internships?  Dr. Sugerman was just announced to be the latest addition to the MGM Mirage’s Board.  James Murren, Chairmand and CEO, stated, “I am delighted to announce that Dr. Sugerman has been elected to join our Board of Directors. As the largest provider of health care benefits in Nevada, our company will benefit immensely from his expertise, particularly as we, along with the entire nation, navigate through the challenges that we face related to health care coverage.”

The MGM Mirage is of course a giant in the world of gaming and entertainment.  It heads sixteen locations in the Nevada, Michigan and Mississippi areas and has numerous investment properties in its portfolio also.  It also heads gaming resorts and recreational resorts’ hospitality areas throughout the world.  Its latest venture will be City Center, which is scheduled for opening late this year. City Center will be on the ever-popular Las Vegas Strip and it will feature a city of gambling, shopping, and entertainment for all Vegas visitors and locals. 

Dr. Sugerman is now on the board that will effectively make decisions for the huge conglomerate.  The doctor is a honors graduate from UCLA and Chicago Medical School. He currently works in Beverly Hills as an otolaryngologist and has over 30 years of experience in his field of study.  Currently he works at Cedars-Sinai Medical Center as attending physician. He also teaches at University of Southern California and the University of California at Los Angeles.  The doctor has spent three decades using his outstanding knowledge and patient concern better the lives of people suffering from head and neck issues and requiring delicate surgeries.  His main focus has been on the upper spine and head studies. 

Surely Dr. Sugerman will bring much decision-making power and forethought to the MGM Mirage Board.  His years of focused experience and discipline will help him to contribute wisely and help the MGM Mirage Corporation grow itself into even more of a gaming, entertainment and hospitality giant than it already is.

The MGM Mirage announced recently that its $1 billion investment into M Resort has drastically lost its value as a result of the suffering economy.  This month the casino released its Q2 earnings and a major contributor to its losses was the expense of $187 million related to M Resort’s bank note.  MGM Mirage ended up losing over $210 million.  The results were announced due to publicly traded companies having to report on all their investments each quarter of their years of operations.  MGM Mirage noted the M Resort as its biggest expense throughout the past few months.

CFO of MGM Mirage, Dan D’Arrigo stated, “Given the current economic climate, the operating environment is certainly challenging. We’ve taken the position that we need to write down that note.”  Although there is a huge loss with the M Resort’s operations, the MGM Mirage has not completely decided to eliminate it.  They see the economy as the true problem, rather than the resort, and are taking a “time will tell” attitude towards future planning.  Elimination of the resort is not an option at this time but it will be monitored for performance for the remainder of the year.

The M Resort opened earlier this year and was able to open in true Las Vegas style. It cost the MGM $160 million but its opening few weeks were noteworthy. It even had to increase staff to handle the added public interest.  Unfortunately the resort’s buzz didn’t last and within a few months, sales were already on the decline.  Although almost everyone blames the economy and the lingering backlash of the recession on the problems, this doesn’t quell concerns about the huge note MGM Mirage is having to carry.

Like every business, the MGM Mirage is hoping that once the recession is truly at an end, business will pick up.  They are hoping that with more money in consumer’s pockets, they will start spending more on vacations. Las Vegas is working hard to keep their special package vacations and luxury get-a-way options attainable to all demographics.  Promotions and advertising budgets are still hefty in hopes to rejuvenate the market once consumers are ready to jump into spending their hard earned cash, once again.

When online casinos first were introduced to the gambling industry, there were many brick-and-mortar owners who rallied against them. They pushed hard for legislation that would ban the online casinos and stated that their introduction to the market would spread gambling revenues too thin.  They didn’t want the online casino to cut into their profits.  Now, due to the recession and many people cutting back on gambling altogether, owners are looking to expansions into the online gaming industry as a way to find added revenue.

Both Harrah’s Entertainment and the MGM Mirage are in full support of legalized online gambling and are looking to expand into the industry.  Harrah’s has been the most supportive of online gaming in recent months and it stands to benefit most from legalization.  In June the company launched its Montreal subsidiary to capitalize on the popularity of online gaming, in countries where it is legal.

Economist Martin Golslat stated, “With the recession and people cutting back on spending in general, all businesses are looking for new avenues of bringing in funds.  Whether it’s online casinos or the local deli, businesses need to be innovative.”  Golslat cited the necessity of innovation and confirmed that if businesses can’t acclimate, they will not survive.

Harrah’s and MGM Mirage are two huge companies that see change as inevitable and are looking for ways to stay alive. By taking advantage of online casinos, whose numbers are consistently growing despite a lag in retail spending, the companies are protecting themselves from future financial disappointments.  They are vocal in support of online casinos, if they are regulated and managed by entities that are already “trusted in the gaming communities.”  The companies hope that their names and long-standing success in the gambling world will allow them to expand into the online market and grow with internet popularity.