text: an investigation of certain aspects of NYRA’s operations by Federal prosecutors. In 
  December 2003, NYRA reached agreement with the Justice Department whereby 
  NYRA was indicted with prosecution deferred. NYRA agreed to pay a fine and the 
  indictment will be dismissed with prejudice upon NYRA implementing certain 
  reforms and otherwise complying with the terms of the agreement. Our 
  participation is subject to a definitive agreement, regulatory approvals and 
  certain legislative changes by the State of New York. 
  
  **Off Balance Sheet Arrangements**
  Our off balance sheet arrangements consist primarily of investments in 
  unconsolidated affiliates, which currently consist primarily of our investments in 
  Monte Carlo and Borgata. We have not entered into any transactions with special 
  purpose entities, nor have we engaged in any derivative transactions other than 
  straightforward interest rate swaps. Our joint venture and unconsolidated affiliate 
  investments allow us to realize the benefits of owning a full-scale resort in a manner 
  that minimizes our initial investment. We provided a guaranty for up to 50% of the 
  interest and principal payment obligations on the construction financing for The 
  Residences at MGM Grand. Otherwise, we have not guaranteed financing obtained 
  by our investees, nor are there any other provisions of the venture agreements which 
  are unusual or subject us to risks to which we would not be subjected if we had full 
  ownership of the resort. 