For Wynn Resorts Ltd., the best possible way out of its difficulties in Massachusetts could be to sell the $2.4 billion casino it is building in Everett along the banks of the Mystic River, and which bears the now toxic name of its founder.
A report in the Wall Street Journal last week indicated that preliminary talks were under way that would sell the property to MGM Resorts. While neither company would comment, the paper cites “people familiar with the matter” as the source.
Massachusetts Gaming Commission Chairman Stephen Crosby said he had no information about a sale, but experts say it might make sense. While an MGM buy of the entire Wynn portfolio might not be rational, the Boston Harbor location could be possible. MGM is already approved to build a casino in Springfield in the western part of the state, and wouldn’t require a lengthy investigation.
So far Wynn has put $1.13 billion into the project, which is due to open in June 2019.
According to Bloomberg, Wynn Resorts is in talks about a possible sale of the Wynn Boston Harbor. The talks are reportedly informal and also reportedly include CEO Matt Maddox, who was appointed to that job after Steve Wynn, the founder, was forced to step down in February by multiple allegations of sexual misconduct stretching out over many years. Wynn has already sold all his shares in the company.
That scandal was sparked by a WSJ story in January.
Throughout all of this, Steve Wynn continues to maintain his innocence and to deny all accusations of impropriety, which include sexual harassment and sexual assault.
Selling the property would definitely lift a weight off the back of the Massachusetts Gaming Commission, which is investigating the company to see if it should be allowed to keep the gaming license the commission issued two years ago.
Crosby last week observed in an email that was acquired by the Republican, “These fires burn so hot they can consume anything they touch. Hopefully we can do this right.”
The Wynn investigation has widened to include whether the scandal is affecting the company’s financial stability, according to the Boston Herald.
Attorneys for Steve Wynn last week said he would no longer cooperate with the investigation now that his connections to Wynn Resorts have been removed.
The MGC is not the only agency investigating the company. So are gaming regulators in Nevada and Macau.
Wynn Resorts originally won the rights to the Boston metro gaming zone in a competition that involved Caesars Entertainment Corp. and the Mohegan Sun, which is still challenging that decision in court.
But any sale of the property would have to go through Everett, the town where the casino is located. According to an agreement signed with Wynn Resorts, the town can block any sale.
Mayor Carlo DeMaria is hesitant to do that since he’s concerned that any buyer would not be bound to fulfill the commitments to Everett made by Wynn Resorts, saying his is “very disturbed” by reports of the sale.
Massachusetts Governor Charlie Baker agreed that Everett will be instrumental in any sale.
“Certainly the gaming commission and the city of Everett have major roles to play in whatever happens on that site, as they should, and I fully expect those’ll play out as more information becomes available going forward,” Baker said.
Last week Crosby was defending the commission’s investigators after another public records request by the Republican uncovered the fact that the agency knew of the settlement between Wynn and a massage therapist a month before the commission began its investigation. Before the Wall Street Journal story that sparked the investigation, there was a story in Bloomberg entitled “Steve Wynn’s settlement with worker haunts him in ex-wife’s suit.”
A link to that article was sent by a state police officer to the commission’s investigative arm, and it was that email that was uncovered by the Republican. The email wasn’t opened or read by the commission’s lead investigator, who didn’t become aware of the settlement until reading the Journal piece, according to a spokesman for the commission.
Crosby commented that the investigators had been watching a lawsuit filed by Steve Wynn’s ex-wife Elaine and a different lawsuit filed by the company’s co-founder, Kazuo Okada.
“We were watching where those lawsuits were going and waiting until some facts settled out,” said the chairman. “So that article was not particularly different, that I recall. We were just aware of the lawsuits, aware that they might eventually have some bearing on suitability or something else, but we were simply watching it.”
It was the Journal piece that sparked Crosby’s interest, he said. He told the Republican, “That had some real meat and potatoes where we felt we had an obligation to get out there and start digging into some of the facts that were specific . . .”
Another Wall Street Journal report, this one last week, revealed that the problems with Wynn may have been systemic, and that many executives and other officials of the company may have been covering up for the former casino mogul—for many years.
Managers and supervisors not only knew about Wynn’s behavior, they threatened employees with their jobs if they spoke about it. The article quoted one victim who was warned by her supervisor, “Don’t try to make this into anything.”
If the commission had known about it, there is little doubt it wouldn’t have deemed Wynn to be “suitable” to hold a gaming license in the Bay State. The commission has possibly the toughest suitability standards of any gaming commission in the U.S.
Because of this investigation Crosby recently warned Wynn Resorts that it “proceeds with this project on an at-risk basis.”
That project is the largest single-phase non-government project to be built in the history of the state. More than 1,000 workers continue to build it.
As a sign that Steve Wynn’s association with the company that bears his name is over, last week attorneys for Wynn and the company itself asked the MGC to remove him as a “qualifier” the term for a key person, from the project. Other qualifiers who were included in the 2013 suitability investigation included Wynn, his ex-wife Elaine Wynn, the current chief executive officer Maddox and current General Counsel Kim Sinatra.
The commission was scheduled to discuss the request this week.
MGM’s possible involvement in the talks deepens the intrigue.
As the $960 million MGM Springfield continues its efforts to fill the ranks of its casino that will open in September, it is emphasizing the necessity of being fluent in English for most jobs.
For many of the postings, “English language proficiency” is listed as the first skill necessary. To remove any doubt: “The ability to speak and understand English when giving and receiving instructions, and talking with management, coworkers, and guests. This includes using correct grammar when speaking and not using slang terms.”
The more public interaction an employee is expected to perform, the more that requirement is emphasized.
This requirement is concerning to Jynai McDonald, Western Massachusetts regional manager for Training Resources of America, which provides English as a second language (ESL) classes. “I have a lot of students who have a great work ethic, they have great soft skills. They are just working on their English skills.”
Others think the casino should clarify “how much” English is enough. The population of Springfield is 45 percent Hispanic or 69,243.
One critic says MGM was more active about recruiting Latinos for construction jobs than it is being for permanent casino positions. The company’s license with the MGC it to provide ESL courses to employees who request it.
Others say that if the company sticks to its English proficiency standards it may be harder to staff the casino, given that unemployment in the area is 4.8 percent.
Ultimately MGM will be hiring 3,000 employees total.
McDonald says that some of her students could probably pass proficiency tests but would still be embarrassed by their accents. She told the Republican, “I would love for there to be more communication from MGM on exactly what they are looking for.”
MGM’s requirements are similar to those of the state’s only operating casino, Plainridge Park Casino in Plainville, which requires that attendants in dining rooms be able to speak, hear, read and understand directions orally and written in English.
Kevin Lynn, executive director of FutureWorks in Springfield, told the Republican, “if you don’t have the ability to speak English, that severely limits your ability to find a job,” he said. “It’s very difficult for someone without the ability to speak English to get to a living wage.”
