MGM Mirage lining up its ducks

By Liz Benston

Tuesday, March 4, 2008 | 6:19 p.m.

MGM Mirage has its eye on someone to run Mandalay Bay. This could accelerate Mandalay Bay chief Bill Hornbuckle's transfer to Atlantic City, where the company plans to build a $5 billion MGM Grand megaresort by 2012.

Chuck Bowling, former executive vice president of sales, channel marketing and distribution, has been promoted to executive vice president of Mandalay Bay, reporting to Mandalay Bay President and Chief Operating Officer Bill Hornbuckle.

Hornbuckle's part-time job is overseeing the Atlantic City development, which some critics have doubted given that market's declining revenue amid increasing competition and an investigation by New Jersey regulators into the company's business dealings in Macau. Wall Street isn't so eager to finance projects, either. Competitor Pinnacle Entertainment recently warned it might scrap plans to build a $2 billion resort there because financing has grown difficult.

In spite of all this, MGM Mirage is serious about building a megaresort of epic proportions in Atlantic City, where older properties are losing ground to the company's half-owned Borgata resort. The Borgata, which will open a $400 million expansion in June, generated $1 billion in revenue last year on profit of $141 million, which fell 8 percent because of competitive pressure and higher fixed costs, partner Boyd Gaming Corp. recently reported.