In a groundbreaking decision that sent shockwaves through the gaming industry, the Massachusetts Supreme Judicial Court ruled that a $19 million handshake agreement related to the sale of land intended for the construction of the Wynn Resorts' Boston-area casino cannot be enforced. The unanimous decision, announced on Friday, highlighted profound concerns over the integrity of the gaming sector and its impact on public policy.

Public Policy Concerns Overrule Handshake Agreement

Associate Justice Scott L. Kafker delivered the court's opinion, asserting that Anthony Gattineri, a minority owner of FBT Everett Realty LLC, could not lay claim to an alleged promise that he would be "made whole" after the state mandated a price reduction on the land's sale. The state had reduced the land's value from $75 million to $35 million due to FBT's connections with Charles Lightbody, a convicted felon with links to organized crime.

This decision translated to a $19 million loss for Gattineri, and the court declared his off-the-books deal with a Wynn executive in San Diego void, citing significant public policy concerns. Justice Kafker wrote, "It is hard to imagine contractual conditions more likely to undermine the public's confidence in the licensing process."

Handshake Can't Save $19M Wynn Deal : First Circuit Seeks State Input

The case reached the Massachusetts Supreme Judicial Court after the First Circuit, responding to a federal judge's decision to dismiss Gattineri's lawsuit, sought guidance from the state court. The First Circuit asked the state court to determine the enforceability of Gattineri's side deal with Wynn, given the state's strict gambling regulations and public policy interests in promoting transparency.

Wynn Resorts, backed by the Massachusetts Gaming Commission, argued that Gattineri's handshake agreement violated the state's prohibition on undisclosed side deals, which evade the commission's scrutiny and raise public policy concerns.

Justice Kafker, drawing attention to the Gaming Act's commitment to stringent regulation to preserve the integrity of casino gaming, argued that Gattineri's association with a convicted felon raised regulatory red flags. The act also mandates thorough investigations into licensees and their associates.

In summary, any agreement hidden from the Gaming Commission, responsible for reviewing and approving casino licenses, and conflicting with concerns about organized crime involvement, is deemed unenforceable as a matter of public policy.

Wynn Resorts Reacts

"We are gratified with the court's decision," said Wynn Resorts spokesman Michael Weaver in response to the ruling.

Counsel for Gattineri did not provide immediate comment on the court's decision.

In a related 2022 ruling, the Supreme Judicial Court allowed FBT to pursue a regulatory taking claim against the Gaming Commission, following concerns that the seller had ties to organized crime.

Handshake Can't Save $19M Wynn Deal : Legal Representation

Anthony Gattineri was represented by Michael J. Connolly, Kelley A. Jordan-Price, and John A. LeBlanc of Hinckley Allen & Snyder LLP.

Wynn and Wynn Resorts were represented by Samuel M. Starr, Emily Kanstroom Musgrave, Caitlin A. Hill, and Catherine S. Lombardo of Mintz Levin Cohn Ferris Glovsky & Popeo PC.