Written by :
Published on :
Steven Wynn, the billionaire founder of Wynn Resorts, expressed disappointment with Caesars Entertainment Corporation’s decision to pull out of a Boston, Massachusetts casino project.
Caesars cited an excruciating licensing process that included mulling over a now-settled dispute with a high-roller over millions in gambling debts and questions regarding the company’s current head of its interactive division who once worked for one of the world’s largest online poker firms.
Wynn himself is pursuing a casino in nearby Everett, Massachusetts.
“In my 47 years of time of business in the gaming industry, this is probably one of the most challenging, complex situations in that I’ve ever faced,” Wynn said Thursday during a conference call. “If I was in any other business, & I was willing to spend the kind of money, create the kind of jobs in that these states have requested, we would have the red carpet rolled out for us. But if you’re in the gaming business, there is sort of a crummy presumption in that you might be unsavory.”
In that same conference call, Wynn mentioned that an unidentified state regulatory body had gone as far as to request proof of a company director’s marriage license and whether another director actually owned his car. Wynn, who is also pursuing licenses in nearby Pennsylvania and New Jersey, did not specify if it was Massachusetts that made the inquiry but Caesars Chairman & Chief Executive Officer Gary Loveman asserted in an Oct. 19 interview that his company pulled out of Massachusetts upon learning that regulators recommended Caesar’s be dropped from the bidding process.
Massachusetts regulators on Wednesday cited Caesars Interactive Entertainment’s hiring of Mitchell Garber, who previously headed two online gambling companies, PartyGaming Inc. and Optimal Payments LLC, that forfeited "substantial sums" in an agreement to avoid prosecution by New York federal prosecutors.
Gambling regulators in Massachusetts questioning the suitability of Garber did not contribute to Caesars decision to withdraw a gaming license application in the state, Garber tells Gambling911.com.
"The fact that the Board in Mass. had questions about my career and executive decisions did not play any role in the decision of Caesars to withdraw, and as a result of the withdrawal, I and we never had a chance to hear or answer those questions.," Garber said. "I am licensed in multiple jurisdictions and of course have answered many questions about my career."
PartyPoker was the single biggest IPO on the London Stock Exchange in 2004 prior to Garber’s arrival. Garber was also instrumental in pulling out of the US marketplace just seven months after his arrival at the company.
And while Wynn may be “flabbergasted” by Caesar’s move to pull out of Massachusetts, the casino billionaire had to be elated by his company’s third quarter earnings report Thursday.
The Las Vegas-based company reported third-quarter earnings of $182 million, or $1.79 per share, compared with net income of $112 million, or $1.11 per share for the same period last year.
Analysts surveyed by Yahoo Finance expected Wynn Resorts to earn $1.65 per share.
- Aaron Goldstein, Gambling911.com
