The executives from Wynn Resorts are in talks discussing with another big operator. The topic is the possibility of the sale of their Boston Casino to MGM Resorts. The venue is still closed and in construction, but has a price tag of $2.6 billion. Both companies revealed that the negotiations are in progress in a joint statement that came out on Friday.
Furthermore, the Boston Globe showed that in May, the CEOs of both companies already talked. These are Matt Maddox from Wynn and Jim Murren from MGM met in person to talk about this possibility. This also shows that the possibility of a sale is more than real and not just an industry rumor.
At the same time, the statement did provide some additional information on the negotiations. Over the past couple of weeks, the negotiations were taking place and examining the possibility of selling Encore Boston Harbor. The talks are still in a preliminary phase and neither casino giants know where they might lead.
Currently, Encore is the only casino license in the Boston area, which makes it a worthy prize for any operator. MGM holds the only casino license for the western region of Massachusetts. This is the major casino facility in Springfield. Of course, all of this comes in the wake of the Massachusetts Gaming Commission investigation into Steve Wynn sexual misconduct allegations.
The report was harsh about the role of previous company executives in trying to cover the allegation and the general company culture related to this problem. Wynn Resorts cooperated fully with the commission and did not contest any parts of the report. The operator was also relieved to find that their licenses remained in place. This includes the Encore casino and its opening date. Still, the operator will need to pay a fine of $35 million and include an independent monitor that will review their employee policies.
It seems that in fact of this resolution, Wynn is still unsure about the ability to get Encore off the ground in the best possible manner. In general, the company has been working on distancing itself from the previous CEO, but also the entire previous management. This is why a sale to MGM could be a way to cut potential loses shorter and make sure that the same process does not come after its opening and an unsuccessful financial period.
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