Wynn Resorts In 'Preliminary' Talks With MGM International Over Sale Of Encore Boston HarborIf Sale Is Finalized, MGM Would Be Forced To Sell MGM Springfield To Another Operator |
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Wynn Resorts Ltd. is in talks with MGM Resorts International about a possible sale of their unopened Encore Boston Harbor, according to a statement from the two companies released last week.
The talks have been ongoing for the past several weeks and both companies noted that they are in the “very preliminary” stages. A potential sale of the casino would note delay the June 23 opening of the $2.6 billion resort casino.
The news comes just weeks after the Massachusetts Gaming Commission finished a more than year-long investigation into Wynn Resorts Ltd. and the alleged sexual misconduct of its former CEO, Steve Wynn. The commision decided to let the company keep its gaming license, but fined the company $35 million.
A CNBC report released last year showed that Wynn Resorts relies heavily on revenue from China. With increased trade tensions between the Trump administration and the Chinese government, it makes for an uncertain economic future for the company.
According to the report, Wynn Resorts draws 69 percent of its revenue from China. It’s the ‘greatest exposure among U.S. companies larger than $3 billion.’
If the sale were finalized, MGM would be forced to sell their other Massachusetts location in Springfield. According to Massachusetts law, casino operators are only allowed to have one license in the state. Purchasing Encore Boston Harbor would force them to sell MGM Springfield to another operator.
MGM wouldn’t mind the move from Springfield to Everett. According to the most recent numbers from the Massachusetts Gaming Commission, MGM Springfield experienced a 15 percent revenue drop in April.
The casino falling well short of their projected revenue. Through its first eight months of operation, MGM Springfield generated $180.7 million in revenue, which is $96.1 million shy of what was projected.
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