The big news today in Las Vegas is the Nevada Gaming Commission's approval of MGM Mirage's buyout of Mandalay Resorts for a reported $7.9 billion. The Nevada State Gaming Control board had recommended on Tuesday that the merger be given the green light. The combining of the two companies will create a mega gaming corporation that will control 28 casinos in five states, including 11 on the Vegas Strip. The combined companies will employ 75,000 workers. The merger will eliminate some of the mid and upper level management positions at Mandalay; but, don't feel too sorry for the out of work executives. They will chop up more than $75.5 million upon completion of the merger. Additional Mandalay management employees will cut up another $11 million in bonuses awarded for their continued service through to the completion of the buyout. Mandalay chairman and CEO, Michael S. Ensign, will receive close to $29 million and Vice-Chairman William A. Richardson collects just over $21 million. The two executives have been with Mandalay since the beginning of its evolution from Circus Circus Enterprises. The pair headed the group that purchased the company from Las Vegas casino icon, William Bennett.

The merger would appear to create a virtual monopoly and non-competitive atmosphere on the Vegas Strip. When asked about this possibility the CFO of MGM Mirage, Mullen, believes the merger does quite the opposite. He said each property will compete with the other properties within the company and the different executives will be compensated according to their property's success. An interesting observation of the new MGM Mirage organization chart is two separate competing groups of hotels headed by John Redmon and 1978 WSOP Champion, Bobby Baldwin.

The new, improved and bigger MGM Mirage Corporation will be the biggest gaming company in the world, at least until the $9.4 billion buyout of Caesars Entertainment by Harrah's Entertainment. Both Harrah's and MGM Mirage are then expected to expand their operations to the developing Asian markets. Include casino properties held by the Boyd Group and Station Properties in this group of elites and you include almost every casino of note. We can't forget the deep pockets of Arizona Charlies and the Stratosphere casino's owner, Icahn, and, of course, above them all is the soon to be opened Wynn resort (see below).