A promise and a handshake by a high ranking Wynn Resorts official with one of the casino land owners was not enough to allow the landowner’s Federal lawsuit to prevail.
Anthony Gattineri’s contract dispute arising out of the sale of the Everett land for the construction of the Encore casino and hotel sought to have Wynn Resorts pay him what he believed was due from the sale.
He wanted $19 million he believed he was owed after the price for the land was dropped dramatically by agreement between the Gaming Commission, officials from Wynn Resorts, and even his own partners in the real estate deal.
Gattineri’s fight to regain money he believes was his and to fully exonerate himself after being prosecuted for crimes related to the land sale, (he was found innocent in Federal District Court by a jury), is another barrier in then long road to ultimate justice for the Winchester businessman and entrepreneur.
“I am appealing this ruling. I am not giving up until I get what I am owed,” Gattineri told the Leader Herald.
Gattineri’s claim arose from a meeting he had with a former Wynn Resorts executive Rob DeSalvio, one of the key players in the Everett Encore project.
Gattineri claimed DeSalvio promised to make Gattineri “whole,” according to the 25 page ruling issued by F. Dennis Saylor IV, the Chief Judge, United States District Court in Massachusetts.
The rollout of the auditorium development intended for land across the street from the casino and hotel was a typical Encore public relations victory.
They fed the story to the Boston Globe. The Boston Globe carried the report first early in December, 2021 with a glowing appraisal of the 1800 seat auditorium and parking garage to augment the casino and hotel operation across the street.
But then on December 28, after the Gaming Commission got involved following complaints from a number of theater owners, that the project as reported by the Globe didn’t seem right.
What’s worse, the Globe later reported, a number of theater owners who tend to compete with one another had complained – to the Globe and the Gaming Commission that Encore’s development plans didn’t seem legal.
Another Globe piece this time discussed the Massachusetts Gaming laws which do not allow casinos to build entertainment venues, with an explanation about the Encore development proposal.
“State gaming law blocks performance venues at Casinos but Wynn aims to build one next door in Everett…” the Globe wrote.
Last week, Encore reported significantly lower gaming revenues for November.
That news was preceded by several weeks with the announcement that Wynn Resorts CEO Matt Maddox is resigning his $25 million a year position to seek other interests.
Now comes the lowering of Wynn’s credit rating by a major credit company.
The lowering of the company’s credit rating is apparently connected to income difficulties Wynn Resorts is having at its main generating revenue machine, its sprawling and luxurious casino and hotel in Macau – about 35 miles from Hong Kong.
“Moody’s Investors downgraded the firm’s credit rating citing ongoing weakness in Macau,” according to Casino.org.
The Macau investment is worth about 75% of Wynn Resorts annual combined revenues. The rating agency took the credit grade on the gaming company’s finance unit to B1 from Ba3, and the probability of default to B1-PD from Ba3- PD. Moody’s also lowered the rating on Wynn Macau’s and the US-based parent company’s senior notes to B2 from B1.
The rating downgrade reflects Moody’s expectation that Wynn’s credit metrics will remain weaker than pre-pandemic levels, because of the slow recovery in earnings amid lingering travel restrictions affecting Wynn’s Macau operations given the still heightened social risk due to the negative effect the coronavirus continues to have on visitation and travel in the region,” said the research firm.
The mystery surrounding Wynn Resorts CEO Matt Maddox’s departure from the company continues to grow in the absence of additional information first published in the New York Post and the Las Vegas newspaper last week.
The Post reported that Maddox had been investigated by the Wynn Board of Directors about a potential problem that was allegedly company related but had come up with a clean bill of health, apparently, according to industry sources.
However, Maddox leaving is big medicine in the gaming world.
Maddox sits at the very top of the premier gaming enterprise in the world, a gaming juggernaut about to explode with billions of new business when their sports betting platform takes shape and form.
Industry analysts say that Wynn Resorts is trying to get out of the hotel business, and even the casino business, in order to pay closer attention to the making of billions of dollars on Internet gaming.
Rumors circulated two weeks ago that Wynn was attempting to lease its gambling and hotel operation here to Mohegan Sun at a pretty penny while at the same time redoubling its effort to become the nation’s leading gaming on line industry giant.