New Jersey gaming regulators have advised that MGM Mirage should be “directed to disengage” from its Macao joint venture partner, the daughter of gambling tycoon Stanley Ho, a filing by the casino giant says.

The recommendation by the New Jersey Division of Gaming Enforcement is the first by a US regulator to go against Pansy Ho, who has a 50 per cent stake in the $1.25bn MGM Grand Macau. The casino opened in Macao, the Chinese special administrative region, in December 2007 and has been struggling financially.

MGM Mirage's partnership with Ms Ho was approved by regulators in four other US states – Nevada, Illinois, Michigan and Mississippi – where the company operates casinos. Failure to secure New Jersey's blessing could jeopardise the licence of its Borgata casino in Atlantic City.

In a filing to the Securities and Exchange Commission by Daniel D'Arrigo, MGM Mirage chief financial officer, the company emphasised that the DGE could only make recommendations to the New Jersey Casino Control Commission, which has the power to issue and revoke licences.

“The DGE is responsible for investigating licences and prosecuting matters before the New Jersey Commission,” Mr D'Arrigo wrote. “However, the report is merely a recommendation and is not binding on the New Jersey Commission.”