Wynn/MGM discuss sale of Encore Boston Harbor
Wynn Resorts might give up its control of the new Massachusetts venue
After all that Wynn Resorts went through to make sure it could hold on to the new Encore Boston Harbor Resort in Massachusetts, the casino company is reportedly ready to give it up. The venue hasn’t even opened yet, but Wynn Resorts is allegedly in talks with MGM International and has been for the past couple of weeks.
The talks are only in the “very preliminary” stages, according to statements by both companies. However, they emphasize that, if a sale were to take place, it would not affect the planned June 23 launch.
Wynn Resorts almost lost control over the resort when the Massachusetts Gaming Commission was deciding how to penalize the company for not controlling the actions of its founder and former CEO, Steve Wynn. The commission finally decided to fine the company $35 million, but allow it to keep its license for Encore.
If MGM were to take possession and want to operate the venue, it would be required to give up its location in Springfield. Massachusetts only allows a casino operator one license, but the acquisition would give MGM an excuse to get rid of the property. It has only generated $180.7 million in its first eight months of operations, and this is $96.1 million lower than MGM had expected.
Wynn Resorts is having to deal with the economic fallout of the actions of its former leader. In addition to the $35 million fine in Massachusetts – which it could appeal – Nevada regulators issued a $20-million fine for the same reasons. Coupled with legal fees and other payouts the company has had to pay, it could be looking at ways to increase its cash holdings to better prepare for the future, instead of having to file for bankruptcy.