Federal Judge Dismisses Lawsuit Against Wynn Resorts

It hasn’t been an easy past few months for Wynn Resorts. Sexual misconduct allegations against the company’s former CEO and a lawsuit for cheating to receive a gambling license has dampened what should have been an extremely successful year for the company. Fortunately, a federal judge has dismissed the recent lawsuit against Wynn Resorts.Wynn Resorts Logo

This has to be a relief for officials within the major US casino company. Hopefully, it allows Wynn Resorts to focus more on international expansion.

Let’s look at why this company was involved in a lawsuit in the first place.

Sterling Suffolk Claims Wynn Resorts Cheated to Obtain Gambling License

Wynn Resorts is one of the most profitable gambling companies in the United States. Earlier this year, the company officially opened the Encore Boston Harbor Casino-Resort, located in Everett, Massachusetts. It proved to be immediately successful.

Unfortunately, Sterling Suffolk began alleging that the company obtained its gambling license illegally. This company, which is a partner of Mohegan Sun, filed a lawsuit against Wynn Resorts, claiming it used “unlawful methods” including kickbacks, political cronyism, and hiding allegations made against Steve Wynn.

Sterling claimed that the company corrupted the Massachusetts Gambling Commission. The company filed a lawsuit for over $1 billion in profits that Sterling would have made had they won the casino license. It was even alleged that the mayor of Everett received a concealed percentage in the casino’s ownership.

Interestingly, this casino was also alleged to be cheating players. Just a few weeks after opening, an individual filed a lawsuit that claims the Encore Boston Harbor withheld full slot payments to players. Eventually, this lawsuit was dropped.

Most felt that the charges had no real merit. A federal judge now seems to agree. This lawsuit is officially being dismissed.

Judge Officially Drops Lawsuit Against Wynn Resorts

It wasn’t easy for Wynn Resorts to construct the Encore Boston Harbor. The company found itself in the middle of an FBI investigation, which found that the land which the casino would be constructed on was partially owned by an individual with ties to organized crime. Eventually, this was all resolved.

This week, US District Judge Patti Saris officially dismissed the claims against the company. She states that parts of the claim can still be continued in state court. She clearly does not support a move to allow Sterling to amend their complaint in her court again.

“The Amended Complaint was filed after Defendants moved to dismiss the initial complaint, meaning SSR already has been given one chance to cure pleading deficiencies identified by Defendants. Further, the essential facts underlying SSR’s RICO claims have been known to the public for years as a result of contemporaneous reporting and the voluminous MGC investigation reports. Therefore, the Court finds that SSR has already had a fair opportunity to plead a viable set of claims but has failed to do so,” the judge’s statement reads. 

This doesn’t mean Wynn Resorts is completely out of the water. The company is still facing two additional lawsuits. These cases are still pending in MA state court. We’ll need to wait and see how everything plays out.

Steve Wynn Continues to Deny Sexual Misconduct Allegations

Steve Wynn was once considered to be one of the most powerful men in the gambling industry. In 2018, his time at the top of his industry ended. The Wall Street Journal published a story that alleges he was involved in several cases of sexual misconduct throughout his career.

Over the past several months, more allegations against Mr. Wynn have come out. In February of 2019, he officially stepped down as CEO of Wynn Resorts. Since this time, he’s avoided the public spotlight.

Steve Wynn continues to deny all of the allegations against him. He is also fighting against the NV Gaming Control Board’s attempts to push him out of the gambling industry. The former casino mogul claims that any additional punishments are unnecessary, as he already left his company.

This situation, along with the lawsuit against Wynn Resorts, has made 2019 less than ideal for the Las Vegas-based casino company. If all goes to plan, officials within the company can begin pushing to obtain a casino license in Japan.

Stay tuned for more US casino news over the next few months!