MGM Ends Boston Casino Talks with Wynn Resorts
MGM Resorts has announced that they have pulled out of talks with Wynn Resorts for the proposed purchase of the Boston Harbor Casino in Everett. This comes one week after the two announced the possible sale of the casino in a landmark deal. Wynn CEO Matt Maddox met with MGM CEO Jim Murren last week to go over the details of the sale but now MGM have pulled out.
Concerns Raised by MGM Stakeholders
The company released a statement staying that they have taken note of anxiety raised by many of its stakeholders regarding the transaction. This has troubled the company, who only wish to have a positive impact on the communities in which they operate. As such, they have come to the decision to discontinue discussions about the possible purchase of the property. The statement went on to say that MGM wish the community all the best and look forward to visiting the casino when it opens in late June.
Wynn also released a statement saying that they pride themselves on the design and development of the world’s best integrated resorts. Speaking on behalf of the company, Michael Weaver said that after careful consideration, the company has agreed to end discussions with MGM resorts.
MGM opened the very first casino resort in the state of Springfield and if they had decided to purchase the Encore Boston Harbor Casino, they would have had to sell the Springfield property. This is because state law prohibits a company from holding more than one gaming license.
Wynn Resorts Slapped with $35 Million Fine
The scheduled opening date for the Encore Boston Harbor Casino is June 23rd but shareholders were recently informed that the opening date could be delayed by one or two weeks. MGM’s decision to pull out of discussion was not altogether unexpected. Wynn Resorts recently faced an in-depth investigation from the Massachusetts Gaming Commission about their response to allegations of sexual misconduct against former CEO Steve Wynn.
After the investigation, the commission reported that Wynn Resorts could keep its gaming license if the company paid a $35 million fine and allow for an independent monitor to regularly check its compliancy. In addition, the commission ordered current CEO Matt Maddox to pay and additional fine of half a million dollars and undergo sensitivity and leadership training.
According to Springfield Mayor Domenic J. Sarno, he was never convinced that the talks between MGM Resorts and Wynn Resorts would come to any sort of fruition. For his part, he is happy that MGM will be staying in Springfield.