Wynn & MGM Rumors Abound in Massachusetts

Matt Maddox (left & Steve Wynn (right) courtesy of CNBC

Wynn Resorts new CEO Matt Maddox reported on CNBC Wednesday that “Boston’s not up for sale. What Boston represents for us is a good growth opportunity……I like that market. I found that land. I pursued that deal. I entered the agreement with the host community five years ago. I liked that market then, I like that market now.”

Rumors have been spreading daily over the two new casinos in Massachusetts.  It all started when Steve Wynn, then CEO of Wynn Resorts, Wynn, was accused of demanding sexual favors from female employees over the last three decades. Since these allegations became public, and his resignation as Wynn Resorts chairman and CEO on Feb. 6, a firestorm of speculation has whirled around Everett, MA.,  spreading to Springfield, MA and even Connecticut’s tribal casinos.

MGM BOSTON HARBOR?

MassLive reported that “gaming officials are exploring the sale of Wynn Boston Harbor, with MGM Resorts International as a top candidate to purchase the project.”  MGM Resorts International has been urged on by John DeCree of Union Gaming stating “purchasing Wynn Boston Harbor could result in a double-digit increase in return on investment for MGM than their casino project in Springfield.”  But state gaming regulations only allow a casino operator to hold more than one gaming license in Massachusetts.  Selling their MGM Springfield project would then be necessary to purchase the Wynn property in Everett.

MORE RUMORS

Meanwhile, back in Springfield, MGM this week has reported a new opening date – earlier than the previously announced late September.  MGM Springfield is now prepared to open (mark your calendars!) August 24th, 2018.  This report is not a rumor, but will the casino in Springfield be owned by MGM by that time?

With a series of “what-ifs” and “thens,” check out this possible 5+ step scenario:

  • 1. MGM purchases Wynn Boston Harbor, becoming MGM Boston Harbor
  • 2. MGM sells Springfield casino.
  • 3A. Mohegan Sun buys Springfield, becoming Mohegan Sun Springfield (the Mohegan tribe lost out to Wynn for the Boston license with their proposal in Revere. or
  • 3B. MMCT Joint venture between the Pequot & Mohegan tribes in CT change it’s prospective 3rd CT casino in South Windsor to Springfield, MA.
  • 3C. The prospective 3rd CT casino in South Windsor continues as a joint venture between the Pequot & Mohegan tribes in CT
  • 4. The prospective 3rd CT casino in South Windsor is not built, leaving Foxwoods out of the mix, until….
  • 5. Connecticut opens bidding for Bridgeport Casino, as Foxwoods & MGM become prime suitors to battle it out for the NYC market.

It seems like fun to make these rumored projections, much like a mock draft on Draft Day.  But it isn’t fun and games for the city of Springfield. MA. Casino opponents in Springfield always warned that “something like this could happen with MGM’s track record.”

MGM Springfield

Remember when this beautiful tower was going to enhance the Springfield skyline?

AND WHAT ABOUT SPRINGFIELD?

According to MassLive, “Mayor Domenic J. Sarno said Friday he has been assured by the top executives of MGM Resorts International and MGM Springfield that it remains committed to building a first-class resort casino in the city, despite unconfirmed reports that the company is in discussions to purchase the under-construction Wynn Resorts casino in Everett.” Residents have made it known that they need MGM for its economic and jobs promises. Some note that MGM has already changed its plans when they changed the 30-story hotel tower and decreased the casino floor.

Other residents have noted that businesses have been reluctant to break ground in Springfield to accompany the opening of MGM Springfield.

MGM has stated, “We do not comment on rumors or speculations around transactions. We remain fully committed to the opening and success of MGM Springfield.”  But it is the Boston market that will pay the most dividends.  Springfield has always been, to some, a questionably lucrative project.

CONCLUSION

Many events would have to happen in order for Wynn Boston Harbor to become MGM Boston Harbor. The summer will prove to be interesting, as state legislatures business is coming to a halt soon in both states, putting a hold on possibilities.  Besides the Wynn Boston Harbor mess and the MMCT situation in CT, sports-betting is also on the table in Massachusetts, Connecticut, and Rhode Island.

For Springfield’s sake, I hope the next throw of the dice isn’t “snake-eyes!”

Binbin