Despite getting the license to build a $1.6 billion resort casino on the Everett waterfront in Massachusetts in Sep 2014, leading casino operator Wynn Resorts Ltd. (WYNN) could not proceed with the same due to a number of issues.
The company had recently crossed the big hurdle with the acquisition of 33 acres of waterfront disputed land (situated on the Mystic River in Everett) to build the resort. The acquisition of this site formerly known as the Monsanto chemical plant site gave the company full control over the property, thereby allowing it to execute its long-awaited casino plan. (Read: Wynn Resorts Gets Closer to Massachusetts Casino Plan)
Therefore, now, Wynn Resorts recently came up with a long-awaited redesign of the proposed casino. The new design reportedly resembles the company’s signature resorts in Las Vegas and Macau. The new property will be a curved building and its exterior will be fitted with the iconic bronze glass. The resort, likely to open in 2017, is expected to provide about 3,700 temporary jobs during construction and about 4,380 permanent jobs.
The new design incorporates some changes as the Massachusetts Gaming Commission found the earlier one too common while granting the license. The Commission licensed the casino on the condition that the company would re-design the project. The casino resort would be a 24 storey building as previously decided but much wider and have 600 rooms (100 more than initially proposed). Meanwhile, Wynn Resorts replaced a planned nightclub with meeting and convention space. The number of parking spots at the resort will be now 3,400 lower than 3,700 planned earlier.
Wynn has finally managed to proceed with the plan after encountering several problems. Initially, the company received approval to build the resort on the former Monsanto chemical plant site after a clash with rival Connecticut-based Mohegan Sun. Later, officials of nearby municipalities reportedly filed lawsuits against the state gambling commission, challenging the casino license and seeking to block the project.
This was the second regional resort casino license the Commission had issued. Massachusetts legislators were reportedly authorized in 2011 to grant licenses for three regional resort casinos and one slot parlor. Earlier MGM Resorts International (MGM) had won the license for a casino in Springfield, MA in the western region. Penn National Gaming Corp. (PENN) is building a slot parlor in Plainville, MA. 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 one won by Wynn Resorts. This region is estimated to deliver almost $800 million annually in gaming revenues. We believe this would help Wynn Resorts to offset the sluggishness in its other major operating region, Macau.
Las Vegas Sands Corp. (LVS) is one other leading casino operator seeking to build new resorts domestically as well as internationally.
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