MGM ends talks with Wynn over Encore Boston Harbor's sale after public officials' concerns

MGM Resorts said Tuesday that it had pulled out of talks to buy the USD 2.6 billion Wynn Resorts’ nearly finished Everett casino, Encore Boston Harbor. Completing the deal would have forced MGM to relinquish the casino license it holds in Western Massachusetts, and presumably sell MGM Springfield, the state’s first resort casino, which opened in August.

“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,” the company said in a statement. “We will always explore ways to deepen our engagement in the Commonwealth. Our discussions regarding the Everett resort were in that spirit.”

The company alluded to concerns over a potential sale raised by public officials, including Governor Charlie Baker, legislators, and the mayors of Springfield and Everett. “We have noted the anxiety raised by various stakeholders regarding a transaction and this troubles us at MGM,” the company said. “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.”

Wynn’s Encore Boston Harbor, the sole resort casino in the Greater Boston region, is scheduled to open June 23, with 671 hotel rooms, 15 bars and restaurants, an array of table games, and more than 3,000 slot machines.

Wynn Resorts, in a statement Tuesday after MGM’s, said it 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,” the firm said. “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.”

Everett Mayor Carlo DeMaria spoke out strongly against such a transaction, saying his host agreement with Wynn Resorts gave him veto power, and he intended to use it. “Great news,” DeMaria said of the end of the talks, The Boston Globe reported. “Hopefully now we can concentrate on getting it open, keeping all those residents working, and sticking with the plan.”

Everett City Councilor Mike McLaughlin said in a statement Tuesday night that he is “beyond pleased hearing this news.” “I have throughout the past week said our community supported Wynn Resorts coming into Everett in 2013 and has continuously supported a five-star resort destination that offed 5,500 plus jobs and millions of dollars in tax revenue to not only Everett but the Greater Boston area,” McLaughlin said.

“Our community only supports Encore Boston Harbor opening Everett’s Resort. I hope this will end these talks and we can get back to working on opening plans for the day, weeks and months leading up to and beyond June 23rd,” he added.

State Senator Sal N. DiDomenico, whose district includes the Encore property, said he’s pleased the jobs promised will become a reality and the resort will open next month. “We will have the five-star property we anticipated and the benefit of future development as well,” he said.

“That’s the right decision,” said state Senator James T. Welch, who represents the part of Springfield that includes the casino. “I think the future is very bright for MGM and Springfield.”