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.
