Wynn Casino Everett News

 

BOSTON (SHNS) – Steve Wynn, the public face of the company building a $2.4 billion resort casino in Everett, has resigned less than two weeks after the Wall Street Journal detailed charges of. Wynn Resorts ultimately paid the fine, but not before rocking the regional gaming industry with news of talks with MGM over a possible sale of the Everett casino. The news outraged mayors in.

Wynn Resorts, which hopes to build a $1.7bn resort casino in Everett in the US state of Massachusetts, has delayed a groundbreaking ceremony, cancelled planned job fairs and frozen all project-related recruitment.

News

The company said the move is in response to Somerville city mayor Joseph Curtatone’s intervention in the award of an environmental permit for waterside construction projects.

Curtatone, a committed opponent of the casino project, submitted the appeal earlier this month.

Wynn Everett President Robert DeSalvio said at a press conference that, due to Curtatone’s appeal, “the construction of the Wynn resort is effectively on hold.

“We are not going anywhere,” he added. “We will get this project started as soon as possible. We will get this amazing project done.

“But for now, unfortunately, due to the delay that’s caused by the appeal, we are actually going to have to go on hold.”

In a subsequent press conference at Somerville City Hall, Curtatone blamed Wynn for the delays.

“The appeals are a necessary to make sure we get it right,” the mayor said.

“They knew the appeal was coming, and their claim that everything from this point on is the responsibility of the city of Somerville is really based on Wynn’s fantasy timeline where they are above the rules and regulations of this Commonwealth, and that they’re not subject to the normal appeals process.

“As soon as Wynn is willing to step up to the plate to develop a responsible traffic plan and address our environmental concerns, then this project has a possibility of moving forward,” said Curtatone.

BOSTON (AP) — Two major casino operators said Friday they were in preliminary talks about the possible sale of one of the largest casinos in the Northeast.

Wynn Resorts and MGM Resorts International said in a joint statement they’ve engaged in conversations about the potential sale of Encore Boston Harbor.

This comes as Wynn is about to open the $2.6 billion Everett, Massachusetts, casino.

The companies say the talks won’t delay the Everett opening scheduled for next month.

MGM currently owns a casino in Springfield and would not be allowed to operate two in Massachusetts.

State gambling regulators last month levied a $35 million fine on Wynn Resorts but let Wynn keep its casino license after finding executives failed to disclose allegations of sexual misconduct against company founder Steve Wynn.

It also levied another $500,000 fine on new CEO Matthew Maddox.

The companies said any talks are still in the early stages.

Wynn Casino Everett Mass News

“Over the past several weeks, we have engaged in conversations around the potential sale of Encore Boston Harbor,” the companies said in the statement. “They are very preliminary and of the nature that publicly traded corporations like ours often engage in, and in fact when opportunities such as this are presented, we are required to explore. We cannot say today where these conversations will lead, however we can reaffirm our commitment to the communities where we operate today.”

The companies added that the conversations “will not impact the jobs at our facilities and will not impact the opening of Encore Boston Harbor.”

Wynn Casino Everett News

The Encore Boston Harbor resort has been slated to open June 23, although company officials have said that could be pushed back by a week or two.

In its investigation, Massachusetts Gaming Commission focused on how long Wynn officials were aware of the allegations against Steve Wynn and how they responded, rather than the truth behind the claims.

Steve Wynn, who resigned as CEO last year, has denied the allegations.

After the fine was announced, Wynn Resorts issued a statement saying “our company is now focused on a successful launch of Encore Boston Harbor.”

The fine was the biggest imposed by any state casino regulatory agency, commission staff and industry experts said. The Nevada Gaming Commission in February levied a $20 million fine on Wynn Resorts that was the largest imposed at the time, they said.

Wynn Everett Casino News

The Massachusetts Gaming Commission, which regulates casino gambling, had no immediate comment on the talks between the two companies.

Elaine Driscoll, a spokeswoman for the agency, said in a statement the agency said its written decision following the Wynn investigation stands.

“The deadline for fine payment and notice of appeal is May 31. The MGC continues to focus its efforts on the significant amount of regulatory preparations required before Encore’s opening,” Driscoll said in the emailed statement.

Wynn Casino Everett News

The 2011 state law that authorized up to three resort casinos in Massachusetts prohibits companies from holding more than one casino license, so MGM would not be permitted to operate both the Springfield and Boston Harbor facilities.

The law does contemplate the possibility of a license transfer and provides guidance for how one might occur, but such a process would likely be complicated and perhaps lengthy, according to gambling regulators.

As host communities for the casinos, Springfield and Everett would also likely have a say in any negotiations surrounding new licensees for the casino.

Wynn Everett Casino News

MGM’s Springfield casino, hotel, entertainment and shopping complex opened last August near the Connecticut state line and reported one million visitors in its first six weeks — generating more than $36 million in gambling revenues, translating to about $9 million in tax revenues for the state, which collects 25 percent of casino gambling revenues.

Wynn Casino Everett Construction

As of March, the state had collected about $42 million in taxes from the casino.