Number 2 casino group, MGM Grand and Indian gaming giant have announced a partnership to develop a $700 million hotel and casino resort in Conneticut.

This would give MGM Grand access to the Indian and Northeast gaming market whilst offering Foxwoods the Vegas experience they need to continue to compete in New England.

MGM Grand would provide a $200 million loan to finance the project, whilst they would divide all operations - gaming, non-gaming and marketing. The Mashantucket Pequot tribe that operate Foxwoods would license the MGM Grand name for the complex

Richard McGowan, associate professor at the Carroll School of Management at Boston College, said the deal is a reflection of the rapidly consolidating gambling business.

''It's exactly like the airlines forming alliances. You've got to build alliances to get customers to come to your casinos," McGowan said.

McGowan said Foxwoods already faces intense competition from the Mohegan Sun casino in Connecticut and may face a powerful new rival if Harrah's, the nation's leading casino operator, succeeds in winning approval for a casino it is trying to build in Rhode Island with the Narragansett Indian Tribe.

Article: Foxwoods, MGM Grand to join in casino ventures