GGRAsia – Wynn, MGM end talks over Encore Boston Harbor sale: firm

Wynn, MGM end talks over Encore Boston Harbor sale: firm

May 22, 2019 Newsdesk Latest News, Top of the deck, World

United States-based casino operator Wynn Resorts Ltd and rival MGM Resorts International said in separate statements on Tuesday that they were ending talks over the potential sale of the soon-to-open Encore Boston Harbor (pictured). The property, under development by Wynn Resorts, is scheduled to open late next month.

In a statement carried by U.S.-based media outlets, Wynn Resorts said it would move forward with the planned opening of Encore Boston Harbor. The US$2.6-billion property is located in Everett, Massachusetts.

“Wynn Resorts prides itself on the design, development and operation of the world’s best integrated resorts. At times, world-class assets attract the attention of others and our board takes seriously its fiduciary duty to review such interest,” said Wynn Resorts in its Tuesday statement.

“After careful consideration we have agreed to cease discussions with MGM Resorts. We remain committed to opening and operating Encore Boston Harbor as only Wynn Resorts is able to do,” added the company’s statement.

Wynn Resorts had flagged previously that it was working toward a June 23 opening date for the Massachusetts scheme. The company’s management however said such opening “could be delayed by a few weeks,” according to a note from Nomura’s Instinet LLC. The memo followed a meeting with management of Wynn Resorts at Nomura’s annual gaming, leisure and lodging conference in New York.

Both Wynn Resorts and MGM Resorts have operations in Macau. When the talks were first announced last week, both companies said the discussions would “not impact the jobs” at their existing facilities and would “not impact the opening” of Encore Boston Harbor.

State gaming laws in Massachusetts ban the single ownership of more than one casino. MGM Resorts already owns MGM Springfield in that state, which opened in August.

In a separate statement on Tuesday, MGM Resorts said it was “troubled” over the “anxiety raised by various stakeholders” regarding the potential deal to acquire Encore Boston Harbor.

“We only wish to have a positive impact on communities in which we operate. We think the best course of action is to discontinue discussions concerning this opportunity,” said MGM Resorts, in a statement reported by U.S. media.

“We are committed to our Springfield community and proud of what we have accomplished including thousands of jobs and millions of dollars of revenue for small businesses in the area,” added the company.