Dubai Betting $5B on Vegas Casino Giant

Deal with MGM Mirage gives Persian Gulf state stake in gaming Mecca
By Heather McPherson,  Newser User
Posted Aug 22, 2007 2:01 PM CDT
Filer from 1992 shows American Finance magnate Kirk Kerkorian. Billionaire investor Kirk Kerkorian is proposing to pay $4.5 billion in cash for Chrysler, as parent DaimlerChrysler AG examines what to...   (Associated Press)
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(Newser) – Dubai World—a company owned by the government of the oil-rich Persian Gulf state—plans to invest up to $5.1 billion in MGM Mirage, the world's second-largest casino company, Bloomberg reports. The move would give Dubai a presence in booming Las Vegas and free up assets for MGM Mirage to diversify its holdings.

MGM Mirage, controlled by billionaire Kirk Kerkorian, counts Bellagio and Luxor among its properties on the Vegas Strip. Gambling is forbidden in Dubai because it contravenes Islamic law, but the deal holds other charms. "We're attracted to the high-end hotels market," Dubai World's chairman says, "and Las Vegas is high-end and high-growth.'' (Read more Kirk Kerkorian stories.)