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It is unquestionably the market leader in terms of casino revenue. The Borgata averages $45 million to $55 million a month, more than twice what most of its competitors take in. Its best month ever was August 2008 when it took in $77.1 million, and May 2006 was the last time any other Atlantic city casino had a better month than the Borgata. Andrew Zarnett, managing director of Deutsche Bank, predicts Borgata will continue to be the market leader in Atlantic City, even as competition in neighboring states continues. "Borgata was successful thanks to a great location, well-executed design and talented management," he said. "Helping its success was a large investment in market research from the outset of development, which helped management understand the customer and implement a well-formulated plan." It also hasn't hesitated to spend money on upgrades and maintenance to the shiny gold glass tower that sends dazzling rays of reflected sunlight through the neighborhood during the day before being illuminated in purple lights at night. It cost $1.1 billion to open the casino, and close to another billion has been spent since then, including on the opening of The Water Club. The Borgata opened as a joint venture between two large casino companies: Boyd Gaming and MGM Resorts International. MGM decided in 2010 to sell its stake and leave New Jersey rather than cut ties to an Asian business partner in Macau. The partner's father is suspected by New Jersey regulators of having organized crime ties to Chinese gangs, but MGM and the family of Pansy Ho deny the allegations. But this year, MGM petitioned New Jersey casino regulators to reconsider, saying Ho's control of the Chinese company has lessened and her father, Stanley Ho, is old and sick and not a threat to wield undue influence over her. That request is still being considered. Its stake in the Borgata was never sold and has been overseen by a trustee. The Borgata is going all-in on Internet gambling, viewing it as vital to maintaining its leadership position. It will face stiff competition from the four Atlantic City casinos owned by Caesars Entertainment, which has the well-established World Series of Poker brand. This year, the Borgata wired its hotel to let customers gamble from their rooms, laying infrastructure that can also be used once Internet gambling becomes legal by the end of this year. It has lined up online firm Bwin.party as its Internet gambling partner.
[Associated
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