Wynn and MGM in Talks for Sale of Encore Boston Harbor
- Wynn and MGM negotiate sale of Encore Boston Harbor
- Massachusetts law allows only one casino property per company
- Wynn and MGM remain competitors in Macau and Japan
Wynn Resorts Ltd and rival operator MGM Resorts are officially in talks for the potential sale of Encore Boston Harbor, representatives of both companies have confirmed.
Encore Boston Harbor Could Change Ownership, MGM Confirms
With a month to go before its opening, the Encore Boston Harbor in Everett, Massachusetts may need to leave the Wynn’s portfolio and go to rival MGM Resorts, the companies announced. Based on a joint-statement cited by the Boston Herald, a daily newspaper, the companies had been in talks for several weeks prior to the announcement.
Over the past several weeks, we have engaged in conversations around the potential sale of Encore Boston Harbor
The companies explained that the talks were still in a very initial stage and no agreement had been reached. Wynn and MGM elaborated further by adding that these “preliminary” talks were something that companies often engaged in to explore further business opportunities. The operators reminded that the talks didn’t mean that the property would change hands.
Jobs and Facilities Not Impacted
If the companies do go ahead with the deal, they don’t seem to plan on changing anything about the current timeline of the project nor in any way affect the people who will work on-site. MGM will have to consider local laws, as the company already owns the MGM Springfield in the state, which means that, under Massachusetts stature, MGM is not allowed to operate another casino.
Selling to MGM is interesting and probably makes sense from a business standpoint, but MGM is one of the main competitors with rival properties in one of Wynn’s main markets – Macau. The pair are also working hard to acquire a casino license in Japan where the Integrated Resort project has already been attracting international investors.
On Friday, Wynn Resorts President of Development Chris Gordon briefly discussed the Encore property while making a presentation to the Japan Gaming Congress in Tokyo. Gordon highlighted the effort that has gone in cleaning up the brown field site which now hosts the property.
Wynn Resorts in Nevada and Massachusetts
Navigating between business deals and regulatory pressure, Wynn has been caught up in solving allegations of sexual misconduct against former CEO Steve Wynn who has since left the job. The Massachusetts Gaming Commission fined the operator $35 million and shortly threatened to suspend the building of the Encore Boston Harbor Property. Wynn Resorts was relieved to retain their Massachusetts license.
Wynn’s boss, Matt Maddox, was also fined $500,000 personally for his way handling the Steve Wynn’s scandal. With the talks yet to shape up into a decision, MGM and Wynn have both a lot on their plate to sort out.
With 4 years experience as an analyst, Julie—or ‘Jewels’, as we aptly refer to her in the office—is nothing short of a marvel-worthy in her attention to the forex and cryptocurrency space as she quickly became the first pick to co-pilot education to the masses with Mike.
