Ex-Owner Of Encore Boston Harbor Property Sues Wynn Resorts
Wynn Resorts’ pursuit of an Everett, Massachusetts, casino has been uncertain since allegations of sexual misconduct surfaced against ex-CEO Steve Wynn. Now, a former minority owner of the land where the casino company is constructing the $2.5B resort is suing for breach of contract and fraud.
Anthony Gattineri filed a complaint in federal court Tuesday alleging Wynn Resorts failed to follow through on an agreement to pay him $18M over its purchase price of Everett land where it is now building the Encore Boston Harbor casino. The 33-acre property on the Mystic River sold for $33M in 2014 in a transaction under dispute due to Charles Lightbody, a co-owner of the property, being a convicted felon.
Lightbody’s involvement forced the Massachusetts Gaming Commission to demand the land be sold at market value in order to prevent him from reaping a huge profit from the casino industry, the Boston Herald reports. The land price dropped from $75M to $35M, and the complaint says Gattineri, who claims to have had a 46% stake in the property, rejected the new offer.
Wynn allegedly remedied the situation by agreeing to pay Gattineri $18.7M as long as he signed an agreement that would give Wynn the land and its license to operate a casino in Greater Boston. But the casino company has failed to live up to its end of the agreement, according to the complaint.
An Encore Boston Harbor spokesman dismissed the claim, saying the company had lived up to its original agreement with Gattineri and the suit was just looking for more money. The company also said it had notified the Massachusetts Gaming Commission of the lawsuit.
Encore Boston Harbor is scheduled to open in 2019.
