MGM Resorts In Talks To Purchase Encore Boston Casino
Wynn Resorts and MGM Resorts International have both announced that they have started talks about a potential sale of the new Encore Boston Harbor. One of the largest casinos in the Northeast, the Encore Boston Harbor is expected to be a prime money maker and a game changer when it opens.
Wynn Resorts have not only invested millions of dollars but have had an uphill battle in obtaining a license and developing this casino. However, Wynn Resorts has had to go through tough times in recent months and is looking to sell its new casino and raise cash in a hurry.
The Massachusetts state gambling operators fined Wynn Resorts $35 million recently for failing to disclose allegations of sexual misconduct against company founder and former chairman Steve Wynn. Wynn Resorts came close to losing its Encore Boston Harbor license they were lucky enough to escape such a penalty.
Wynn Resorts CEO Matthew Maddox also got hit by a $500,000 fine for failing in his duties.
CNBC Television
The $35 million fine was the biggest fine ever imposed by any state casino regulatory agency. While Wynn Resorts is in good financial shape and can afford to pay the fine, the company has taken a beating in the media in the last 18 months. It looks like Wynn Resorts would rather scale down its presence in the state for some time.
In a statement, both companies said
Over the past several weeks, we have engaged in conversations around the potential sale of Encore Boston Harbor. 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.
This is in contrast to the initial statement released by Wynn which said that the fines would not affect the opening of the Encore Boston Harbor, which has seen $2.6 billion in investment.
Encore Opening Delayed
The original plan was for the Encore to open on June 23. With these new negotiations, company officials have pushed the opening back by another couple of weeks.
It is interesting to hear that MGM is going after Encore Boston Harbor. MGM Resorts already has a license to operate its MGM Springfield casino and hence based on the state gaming laws it cannot operate another casino. If MGM wants to run the new Encore Boston Harbor casino, it might have to go in for a license transfer. Gaming experts point out that this is a long and complicated process, so it will be interesting to see how MGM approaches this potential sale.
Doug RamirezAuthor
Doug is our American guru, he will be keeping us informed with latest tournament news and goings on in the USA
