A Massachusetts judge has ruled that fraud and unfair trade practices claims against Wynn Resorts regarding a $40 million discount on land for the Encore Boston Harbor casino will proceed to trial. Suffolk Superior Court Judge Kenneth W. Salinger’s Thursday decision sets the stage for a 2025 bench trial involving allegations from FBT Everett Realty, the original landowner.

Disputed Land Sale Discount

FBT Everett Realty accuses Wynn Resorts of leveraging regulatory concerns from the Massachusetts Gaming Commission (MGC) to pressure it into reducing the sale price of a 33-acre parcel from $75 million to $35 million. Wynn allegedly cited MGC concerns about a "casino premium" tied to the land due to its links to Charles Lightbody, a convicted felon with Mafia ties.

FBT claims Wynn falsely represented that the commission would deny its casino license unless the price was reduced. Judge Salinger found enough evidence to support FBT’s allegations that Wynn exaggerated regulatory threats to secure the discount.

Key Evidence and Testimony

In a deposition, FBT manager Dustin DeNunzio recounted a heated meeting where Wynn’s then-general counsel, Kim Sinatra, allegedly issued a stark ultimatum:

Further, Wynn executives sent letters reinforcing the urgency, one of which stated that failure to reduce the price would make Wynn ineligible for a casino license. Judge Salinger noted that a factfinder could interpret these communications as fabrications designed to pressure FBT.

Gaming Commission’s Role Cleared

While Wynn faces trial, Judge Salinger dismissed FBT’s claims against the MGC, ruling that the commission’s actions did not constitute a regulatory taking. The commission never formally directed Wynn to lower the price; rather, its Investigations and Enforcement Bureau (IEB) raised concerns about Lightbody’s involvement but left the resolution to Wynn.

The judge emphasized that the IEB’s advice was not binding, as the commission never issued a final decision requiring FBT to accept the discounted price.

Next Steps in the Case

The lawsuit, filed in 2018, has already undergone extensive litigation, including a trip to the Massachusetts Supreme Judicial Court. A two-week bench trial is expected in late May or early June 2025. FBT is represented by Todd & Weld LLP, Wynn by Mintz Levin, and the MGC by Anderson & Kreiger LLP.

Conclusion

The trial will delve into Wynn’s negotiations with FBT and its communications with the MGC, potentially shedding light on high-stakes dealings in the development of the $2.5 billion Encore Boston Harbor casino.