Wynn Casino Everett News
EVERETT, MA — Wynn Resorts is eyeing a sale of its Encore Boston Harbor resort and casino in Everett, The Boston Globe first reported Friday. The casino giant and MGM Resorts issued a joint.
Wynn Everett Casino News
- The news of the potential sale comes right after Wynn Resorts was fined $35m by the Massachusetts Gaming Commission for concealing allegations of sexual misconduct during the bidding process for the Everett casino. According to VSO News, the company was allowed to retain its license to operate the casino despite the massive fine.
- Tuesday, Wynn Resorts stock went up with the market in general on the news that a bailout is coming, and soon. The stock price jumped beyond $60, to about $65.00. Correspondingly, its market share value went up to $7.12 billion.
Burning through precious cash
By Josh Resnek
If you follow the stock market, and if you pay attention to your retirement accounts or 401k’s – if you have them – then you know how badly everything has fared since the shutdown of the American economy.
In a world where cash is king and being broke is about as bad as a situation can be nowhere is this more evident than with the financial situation over at Encore Boston Harbor.
Mind you, Encore/Wynn Resorts is not going out of business even though they are presently out of business in Macau, Las Vegas and in Everett.
All the doors are locked. All the employees are being paid.
Nothing is coming in.
In addition, because nothing is coming in and Encore needs to pay its bills, executives at the company have been drawing down millions of dollars from its $850 million line of credit.
About 30 days ago, the company’s market cap value, that is, the value of all its common stock outstanding was about $14 billion.
Last week, it sank to about $4 billion – the price of the stock declining from a recent high of $130 to about $45 a share.
As the price for the stock fell, the dividend remained the same, increasing the percentage value of the interest paid vis a vis the value of the stock.
As the stock goes down, the interest value goes up.
Last week it was almost at 8%.
Wynn Casino Everett Mass News
Tuesday, Wynn Resorts stock went up with the market in general on the news that a bailout is coming, and soon.
The stock price jumped beyond $60, to about $65.00. Correspondingly, its market share value went up to $7.12 billion. These incredible and unpredictable wild swings in price and market share evoke the kind of volatile moment we are experiencing with the US economy shut down.
Can Wynn Resorts survive with it doors closed?
No it can’t.
Can it pay its 5,000 employees here another round of salary for a month after its first 30 day effort is done?
Unlikely.
What happens when Encore reopens in Everett finally?
They are back in business. They prosper, and they survive.
However it is likely when the reopening comes, the crowds will not be banging down the doors.
Whatever happens following the virus is gradual, until normalcy returns – if it returns.
If it doesn’t, the casino and hotel here faces the same difficulties as everyone now out of business.
Rebuilding the business after reopening will take time, energy and cash.
As long as Wynn Resorts maintains a cash position, it survives nicely. When its cash buffer is gone, Wynn Resorts will likely be gone with it. What then will Everett do?
That is a very good question as Encore pays Everett $30 million a year in lieu of taxes.
Wynn Resorts is following through on its promise to the Massachusetts Gaming Commission to redesign the Wynn casino resort planned for Everett. Several commissioners were highly critical of the original design for the .6 billion resort.
The casino giant provided its first status report on the project since winning the license to build its 27-story casino and hotel tower.
Wynn also began holding public meetings to obtain input on its cleanup plan for the polluted 30-acre site of the former Monsanto chemical plant. The facility will overlook the Mystic River across the river from the Charlestown district of Boston.
Wynn officials told a group of more than 100 people at Tufts University that they planned to meet the “highest standards” set by the federal Environmental Protection Agency. Currently the estimate for clean up is at least $30 million, according to Robert DeSalvio.
“The company commitment is that we’ll get the job done,” he said. “We have a very significant task ahead of us, getting this site cleaned up and ready for development.”
Among Wynn’s plan for the facility is an esplanade along the river, a public park and a winter garden. It also plans to ferry visitors to the facility with boats and restore nearby sale marshes. One proposal that Wynn had floated is no longer viable: using oysters to help clean the river. The authorities refused to allow this since there was no way to prevent people from harvesting and eating the unsafe oysters.
Monsanto was only the latest chemical producer to use the land. It was used by several chemical companies dating back to 1868.
Two methods of clean up will be used: mixing cement with the polluted soil to permanently render it inert and to remove and dispose of contaminated soil. Wynn estimates the clean up will take up to four months to complete.
Last week two gaming commissioners, James McHugh and Gayle Cameron, met with some residents of Charlestown, to answer their questions about the Everett casino and the process. State Rep. Dan Ryan set up the meeting.
Ryan told the crowd, “Like it or not that may be the reality. I’m going to get to know you folks a whole lot more because I intend to see this thing through if that’s where it’s going right until the end. I live one mile from there. There is no elected official in the commonwealth that lives closer to a proposed casino than I do.”
The commissioners were well aware that they were addressing a mainly hostile gathering. According to the Patriot-Bridge, McHugh told the group, “I understand that some of you, perhaps many of you in the room are unalterably opposed to gambling,” said McHugh. “I also understand that some of you though not unalterably opposed to gambling are unalterably opposed to gambling here because of its potential impact on the community.” He said he didn’t expect to change those views, but wanted to explain the mitigation part of the license award and to answer questions.”
The presentation noted that Wynn will be paying $76 million in traffic mitigation to Boston and will be required to improve Sullivan Square regardless of price. McHugh noted that the commission as a condition for awarding the license increased the mitigation amount from $46 million to $76 million.
He added that Wynn would have to pay $20,000 per year for each vehicle trip above a certain level on peak traffic periods.
More said that all of the incentives and penalties could add up to $50 million for a long-term solution to Sullivan Square.
Cameron added that despite the fact that Boston has not yet reached a mitigation agreement with Wynn, and despite its refusal to participate in arbitration with Wynn, that the commission still encourages it to reach such an agreement with the developer. He also noted that any transportation plan Wynn comes up with must have the blessings of the Massachusetts Department of Transportation.