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The casino games are back in town – led by two giants of the game and the Massachusetts Gaming Commission, which once again seems to have been blinded by an unexpected coup of the brand inherited from Steve Wynn.
The startling news that Wynn Resorts is in talks to sell MGM's lucrative Encore Boston Harbor casino has landed like a thump in the MGC, which now needs to regroup and prepare for the chaos that a potential sale could trigger.
Nothing less than hundreds of millions of dollars in tax revenue and thousands of new jobs are at stake.
The commission has recently agreed to let Wynn retain its eastern Massachusetts license in exchange for a $ 35 million fine and other conditions, apparently putting an end to the long saga surrounding the casino and allegations of misconduct sexual abuse against the owner Steve Wynn.
But Encore's casino, as well as MGM's new resort and casino in Springfield, are now suddenly in doubt and the MGC has to scramble to keep the gaming industry alive and viable in Massachusetts.
State gambling legislation prohibits a casino company from holding two licenses. Therefore, if MGM agrees to buy Encore at Wynn, it will have to sell its underperforming casino in Springfield.
The Gaming Commission should approve any license transfer, which means that the planned opening of Encore Boston Harbor in late June could be delayed by several months or more. And the cities of Springfield and Everett may have to negotiate new deals with any new gaming licensee.
The question to the Gaming Commission is: could all this uncertainty have been avoided?
The commission for beginners failed miserably in its initial investigation of Wynn, missing the scandal of sexual misconduct in Wynn.
However, even though Wynn executives deliberately concealed the misconduct charges against Steve Wynn, the MGC controller nevertheless decided to let Wynn Resorts retain its license.
This is not the first time rumors have run out that Wynn would sell his license to another bidder – but Wynn officials have always promised they were here to stay.
"Boston is not for sale," said Matthew Maddox, CEO, in an interview with CNBC in April 2018. "I love this market, I've found the land, I've found it." I continued this case. I signed the agreement with the host community five years ago. I liked this market then, I love this market today. "
Now, Wynn and MGM promise to do things in the place of host communities.
"We can not say today where these (sales) conversations will lead, but we can reaffirm our commitment to the communities where we operate today," said the companies in a joint statement.
Can we now believe everything Maddox and Wynn have to say? And can we trust the commission to make the right decisions?
The answers are clearly no.
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