Wynn Resorts Ltd. (WYNN) has won the race for the lucrative $1.6 billion Boston-area casino license, according to media reports. The Las Vegas-based casino giant triumphed over rival Mohegan Sun, mainly on the strength of its economic development potential.
Connecticut-based Mohegan Sun had proposed a $1.1 billion casino at the Suffolk Downs horse racing track in Revere. The decision of The Massachusetts Gaming Commission came after Wynn made a number of significant additions to the plan, including re-designing its 27-story hotel tower and spend more toward plans to regulate traffic through Sullivan Square in Boston.
The Massachusetts Gaming Commission voted in favor of Wynn Resorts’ plan to turn a former chemical plant site on the Mystic River in Everett into a casino resort. However, a final round of voting will take place today, after Wynn agrees to certain regulatory terms and conditions.
Last week, the regulators reportedly released detailed reports indicating that Wynn Resorts has a stronger financial position to manage the casino while Mohegan Sun has a stronger overall design for its casino. Wynn then won the contest mainly due to its stronger development financing plan, a much larger construction investment, and a bigger projected workforce and payroll.
Massachusetts legislators were reportedly authorized in 2011, to grant licenses for three regional resort casinos and one slot parlor. This is the second regional resort casino license the commission has issued.
Earlier, MGM Resorts International (MGM) won the license for a casino in Springfield in the western region. Penn National Gaming Corp. (PENN) is building the slot parlor in Plainville. Discussions are on to select a licensee for the third casino in the southeastern region of Massachusetts.
However, reportedly, among all these, the most valuable of the state’s casino licenses is the Greater Boston license, which Wynn has won. This region is estimated to be worth almost $800 million annually in gaming revenues. This will help Wynn Resorts to offset some of the troubles faced by the company in its other major operating region, Macau
Wynn currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include 500.com Limited (WBAI), which carries a Zacks Rank #1 (Strong Buy).
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