MGM to Shut Internet Gambling Unit

MGM Mirage, the third-largest U.S. casino company, said it will shut its Internet gambling unit because the laws governing online wagering in the U.S. and other countries are “unclear.”

Second-quarter profit will be reduced by $5 million because of losses from the unit and unrecoverable costs of computer software and hardware, Las Vegas-based MGM Mirage said. The unit will shut down at the end of this month.

MGM Mirage formed its online unit in September 2001 and once estimated it would generate annual revenue of as much as $500 million.

Shares of MGM Mirage rose $1.44 to $30.19 on the NYSE.