Dubai world has received permission from New Jersey Casino Control Commission to boost its stake in MGM Mirage, the largest casino operator, to 20 per cent, said a news report.

Dubai World is the second-biggest shareholder and currently owns 9.4 per cent of MGM Mirage, while Los Angeles billionaire Kirk Kerkorian holds the majority stake, at almost 54 per cent.

The New Jersey Casino Control Commission approved Dubai World's application on Thursday, commission spokesman Daniel Heneghan told Bloomberg News.

Dubai World started building up its stake in MGM in August 2007 as part of a deal that included the purchase of MGM shares and the acquisition of a 50 per cent stake in MGM's massive CityCenter project in Las Vegas and increased its ownership in February.

MGM Mirage chief financial officer Dan D'Arrigo said it has been Dubai World's intention from the initial agreement to acquire 20 per cent of the company, although no timetable has ever been set.

'It's clearly up to them when and how they want to acquire the additional shares,' D'Arrigo said Friday.

Earlier this year, Michigan gaming regulators gave Dubai World permission to raise its stake in MGM Mirage to 14.75% and will need to grant an additional approval.

Dubai World had earlier announced that it would invest about $5.1 billion to buy 28.4 million shares, or about a 10th of the company.

It would also pick up a 50 per cent stake in CityCentre, an MGM project in Las Vegas.