More Details Emerge on MGM Resorts International Discussions on Potential Acquisition of Wynn Boston Harbor
Patrick Johnson | The Republican, Springfield, Mass. | April 13, 2018 2:54pm
April 13--The Wall Street Journal reports that Wynn Resorts LTD. is in the early stages of negotiations to sell its partially completed $2.5 billion casino in Everett with MGM Resorts International, and that if a deal is reached, it could mean that MGM would have to sell its stake in MGM Springfield.
Massachusetts law forbids any one company from holding two casino licenses, and the Journal notes the law is a "potential hurdle" should MGM International pursue the Wynn project.
The Journal, citing unnamed sources, presented three options should MGM International purchase the Wynn property:
"MGM could try to sell the Springfield project to a buyer who passes regulatory muster, but the politics could be tricky in a city that is banking on this casino to help revive its downtown core. The company could also try to get permission to operate two properties in the state, or seek some other arrangement."
MGM Springfield, which is scheduled to open this fall, is under construction in the city's South End. The estimated price tag on the project is $960 million.
Wynn Boston Harbor was on track to open sometime next year, but construction costs have ballooned to $2.5 billion, which puts it among the most expensive ever built outside of Las Vegas.
Wynn and MGM are only in the early stages of talks for the sale of Wynn Boston Harbor only.
The Boston Harbor casino is projected to generate more than $250 million in gross earnings in 2020.
Wynn International is apparenly considering selling the site because of continuing fallout from the departure of Chairman Steve Wynn after allegations that he engaged in a long-time sexual misconduct against employees, including one who charged he forced her to have sex with him.
The Massachusetts Gaming Commission, whose investigators say a multi-million dollar Wynn settlement was actively concealed from them, are looking into whether the company is still a "suitable" holder of the lone eastern Massachusetts casino license.
At Thursday's meeting of the Massachusetts Gaming Commission, which oversees both the MGM and Wynn projects, Chairman Steve Crosby said he had "no inside information" on Wynn looking for buyers.
"Nobody's talked about it to me, no," he added.