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Staying updated on the various news and rumors surrounding Wynn Resorts has proved to be challenging. However, one news that demands attention is the possibility of Wynn Boston Harbor casino project being sold to rival MGM Resorts.
According to various sources, multiple media outlets have covered the story, although it is widely acknowledged that the deal is still in its early phases.
In the event of progressing negotiations, numerous challenges need to be addressed, extending beyond the determination of the sale price.
- It is against Massachusetts law for companies to possess multiple casino licenses within the state.
- Both companies have entered into separate agreements with their respective host communities. Wynn’s agreement is with Everett, while MGM has made a deal with Springfield. These agreements grant the cities the power to reject any potential sale.
- To facilitate a sale, both communities are unlikely to reduce the sizable investments guaranteed in the host community agreements.
In essence, in order for this to be successful:
- Both casinos must be sold within a brief timeframe.
- The approval of Everett is required for the sale of the Wynn project to MGM.
- The approval of the sale of the MGM casino to any potential buyer would be required by Springfield.
This would undoubtedly rank as one of the most challenging sales in the gaming industry’s history.
Given the multitude of other news items in the region, a deal like this becomes increasingly improbable.
- MGM’s fascination with a Connecticut casino
- An intertribal casino located on the Connecticut side of the Massachusetts-Connecticut border.
- Both states have gaming expansions.
However, perhaps it isn’t so implausible after all?
The only way this makes sense
I must clarify that what follows is purely speculative. Nevertheless, it seems logical to consider that one or both of the Connecticut tribes may be interested in acquiring the MGM Springfield casino, given the recent reshuffling of casinos.
Almost everyone involved would receive a Wynn (ICWUDT) as a consequence.
Good for Wynn
There are a couple of ways in which Wynn would benefit.
The conclusion of the investigation in Massachusetts would effectively put an end to the scrutiny surrounding Steve Wynn’s suitability, especially considering that Massachusetts has been particularly thorough in examining the allegations of sexual misconduct against him compared to other jurisdictions.
The future of the Wynn license remains uncertain as the Massachusetts Gaming Commission Chairman, Stephen Crosby, has stated that the company is taking their own chances as the regulatory body conducts its investigation.
Crosby informed the local press that Wynn has chosen to move forward with the decision. He acknowledged the ongoing investigation and stated that Wynn will bear the responsibility and potential consequences associated with it. Crosby expressed acceptance of their decision, stating that it does not pose any issues for them.
Therefore, if Wynn Resorts sells the Everett casino before a decision is made on its suitability in Massachusetts, they can still receive a high price for it. However, if they choose to wait and a negative ruling is issued, they may be forced to sell the casino at a substantial markdown.
Good for MGM
MGM’s decision to shift its focus from the Springfield project to Everett would result in a significant improvement in both the casino’s size and location.
The distance between Boston proper and the Everett casino is approximately 15 minutes. Additionally, with a staggering cost of $2.4 billion, the establishment will be an outstanding resort, attracting tourists from all corners of the world. In contrast, the Springfield casino is situated in a city in western Massachusetts with a population of roughly 150,000 and lacks a significant airport.
If MGM successfully sells its billion-dollar Springfield casino, acquiring the Wynn Boston Harbor project would be a significant improvement.
Good for Foxwoods and Mohegan Sun
It is widely known that the tribal casinos in Connecticut will face significant challenges due to the presence of casinos in Massachusetts.
It was not very unexpected that both tribes actively competed for the casino licenses in Massachusetts.
Regrettably, both bids from the tribes did not succeed. The Foxwoods proposal for a casino in Milford was rejected in a town referendum, while Mohegan Sun’s proposal at the Suffolk Downs racetrack was overshadowed by the Wynn project.
In an attempt to strengthen their position, the two tribes managed to convince the state of Connecticut to support the establishment of a shared satellite casino near the Massachusetts border, adjacent to Springfield.
Comparing the upcoming $300 million tribal casino, located just 15 minutes away, to a knife in a gun fight, I anticipate both its own challenges and a detrimental effect on the MGM Springfield casino, which costs $1 billion.
If either one of the tribes or both tribes join forces to gain control over MGM Springfield, the satellite casino becomes unnecessary.
Furthermore, the desired outcome of the tribe or tribes would ultimately be achieved: the establishment of a casino in Massachusetts.
Good for Massachusetts, and both casino cities
Massachusetts could finally move on from the unpleasant Wynn scandal and simultaneously resolve the escalating casino border conflict with Connecticut.
In addition to leaving the Wynn controversy behind, the city of Everett would gain valuable insight into the future of its casino project.
By rejecting the proposed satellite casino on its southern border, Springfield aims to reduce regional competition.
Bad for Connecticut?
Connecticut would be the sole prospective loser in this situation.
Despite the tribes’ pleas to legalize online gaming and sports betting, as well as the state’s refusal to dismiss the possibility of commercial casinos, the state’s indecisiveness in determining its stance on gambling expansion has potentially exasperated the tribes and diminished their trust in the state.
However, if the tribes were to migrate to Massachusetts, it would potentially simplify Connecticut’s gaming decisions.
The state would make a decision on land-based expansion, potentially including an agreement in the sale where MGM would abandon its plans to build a commercial casino in Connecticut, and the satellite casino would be permanently abandoned.
The tribes’ desire for sports betting and online expansion would be prioritized, enabling Connecticut to concentrate on these areas.
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