Gattineri’s stake in FBT Everett Realty stood at 46%. The company had initially sold the land to Wynn for $35 million, a significant markdown from the initial agreement of $75 million. This change came about after concerns were raised by the state gaming commission regarding potential ties between the seller and organized crime.
First Circuit’s Call for Clarity Leads to Supreme Court Showdown
The First Circuit, seeking clarity on the enforceability of Gattineri’s side deal with Wynn, deferred to Massachusetts’ highest court. They sought to determine whether this agreement violated the state’s ban on undisclosed side deals, a breach of transparency, and a potential “casino premium” for the land.
In their defense, Wynn Resorts, in collaboration with the Massachusetts Gaming Commission, argued that Gattineri’s handshake agreement flagrantly violated the state’s prohibition on such secret arrangements, which bypass commission scrutiny and raise concerns about public policy.
However, Associate Justice Serge Georges cast doubt on this argument. He found merit in Gattineri’s claim that the provision applied only to deals made after the issuance of a license. “Could you go through the math for how that provision could apply when the license was still extant?” he inquired, pressing Wynn attorney Emily Kanstroom Musgrave for answers.
