Region is Glad MGM is Standing Pat
We’ll probably never know how far the talks went between Wynn Resorts and MGM Resorts concerning the acquisition of the $2 billion casino in Everett supposedly ready to open any time now.
We’ll just say that we’re glad — and the state should be glad, and the city of Springfield should be glad, and Everett should be glad — that those talks are over, and that MGM will stand pat (yes, that’s an industry term) and not pursue that property.
Had those talks continued and a sale been forged … well, let’s just say we don’t want to go there. And, again, we’re glad the state doesn’t have to. The status quo is working quite well in Springfield, thank you, and if there’s one thing the state and its Gaming Commission don’t need to bring to the picture right now, is question marks — or more question marks, to be more precise.
In case you missed it — and it was hard to miss — word leaked that Wynn Resorts, which is now licensed to operate a casino in Everett under the Encore brand, was in what were called “very preliminary discussions” about a sale of that property to MGM.
Media outlets across the Commonwealth then printed stories laden with conjecture about whether the sale should take place and what might happen if it did. Most of those quoted blasted the concept and projected that it would create something approaching chaos at a time when the state needed just the opposite from its still-fledgling casino industry.
“This isn’t a Monopoly game,” former state Sen. Stanley Rosenberg, a key author of the state’s gaming law, told the Boston Globe as news of the talks broke, adding that a sale of the Boston property, which would force MGM to divest itself of the Springfield facility, was far from a slam dunk. Carlo DeMaria, mayor of Everett, went further, saying, “it’s not going to happen.”
Turns out he was right, because amid that wave of negative commentary and gloom-and-doom conjecture, MGM announced that it was playing the hand it was dealt.
Whether that’s the best move for company, we can’t say. But we can say it’s the best move for the state and this region.
MGM is a known commodity, but whichever entity would buy the Springfield casino is not, and while there are plenty of good casino operators out there, we don’t need an unknown commodity at this point.
Especially in Greater Springfield. Communities, businesses, nonprofits, and other constituencies have forged solid working relationships and partnerships with MGM. They haven’t forged them with a casino on Main Street, but instead with a company, one that has come to be a trusted stakeholder in this region.
So we’re glad MGM is not seeking potentially greener pastures in Boston.
But while this threat has passed, we have to wonder about how it materialized in the first place. The fact that Wynn Resorts fought a long, hard, very expensive battle to open a casino in Everett and then explored a sale just as it was set to cross the finish line is a head scratcher, to be sure.
But there is a lot we don’t know about this industry, and maybe a sale makes sense on some levels, especially if Wynn, which desperately wanted into the Massachusetts market, is now intent on getting out.
Just not a sale to MGM.
Now that MGM has backed away, it’s time for the Gaming Commission to determine whether Wynn is still the best fit for the Boston market, and if it isn’t, the state should find another player.
It’s also time to move forward with the next big order of business — sports gambling. As it did with gaming itself, the state is dragging its feet on sports gambling, losing revenue to neighboring Rhode Island with each day that passes.
Thankfully, the state, and Springfield, won’t have to deal with a change of ownership at the casino in Springfield’s South End.