Rival Casino Operator Still Wants Wynn's Massachusetts License InvalidatedCourt Battle Could Ensue Over Casino |
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Steve Wynn’s fall from grace could mean trouble for the gaming license for Wynn Resorts’ casino outside Boston.
The $2.4 billion casino, to be equipped with a 90-table poker room, is currently under review by state gaming regulators, who recently said that the investigation is a top priority.
The casino is about half-way built, but a Congressman from the Bay State said that it would be “fine” if construction is put to a halt. Regulators have already determined that Wynn hid from them a $7.5 million settlement stemming from alleged sexual misconduct in 2005 with a former employee.
The stakes are high. Massachusetts eyed about $260 million in annual tax revenue when it granted approval for the project in 2014. About 4,000 people are slated to work there.
According to the Boston Globe, a lawsuit dating back to the licensing process for the casino, the only one allowed in that region of the state, might also come back to hurt the company. Wynn beat out Mohegan Sun’s pitch for a casino at Suffolk Downs. That was in 2014, but after the explosive Wall Street Journal report last month, things reportedly could change.
Wynn, 76, has denied that allegations, but he resigned as CEO citing an “avalanche” of negative headlines directed toward him. He is still a significant shareholder.
Mohegan Sun, operator of a nearby casino in Connecticut, sued to invalidate Wynn’s license, claiming favoritism on behalf of the state Gaming Commission. One of Mohegan Sun’s reported claims is that gaming regulators overlooked the criminal histories of two men who were once investors in the piece of land for Wynn Boston Harbor. The lawsuit doesn’t involve the sexual misconduct allegations against the casino operator’s founder. The Gaming Commission denies that allegations and reportedly said there’s no evidence to back up the favoritism claims.
Years later, there was a major shakeup with the Las Vegas-based casino giant.
“Both sides were gearing up for oral arguments in April,” the Globe report stated. “But they now will wait to see what happens with the gaming commission’s review of the new claims against Wynn. That April court date likely becomes a status update, not a legal slugfest. It’s a safe bet that Mohegan’s legal team will try to use this turn of events to its advantage.”
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