The highly anticipated expansion of the Encore Boston Harbor casino has hit a major roadblock, with Wynn Resorts putting a halt to the proposed $400 million development amid financial disputes with the city of Everett. The planned expansion, which included a new dedicated poker room, a second sports betting parlor, and various entertainment offerings was intended to solidify Lower Broadway's status as a vibrant destination district.
According to the Boston Globe, the standoff centers around the financial implications of the expansion, including property taxes, impact fees, and necessary infrastructure improvements. Wynn Resorts has already invested $2.6 billion in the existing Everett casino that opened in 2019. Despite the halt, the company reported stable profits and record slot-machine activity in March, with Encore Boston Harbor generating more than $750 million in gaming revenue last year. "We have put this development on hold for the time being because we have been unable to reach an agreement with local authorities on certain financial terms," CEO Craig Billings told the Boston Globe.
On a Wynn Resorts earnings call, the sentiment echoed was one of disappointment but the company emphasized alternative global projects where capital can be redirected. "Numerous other development projects globally where we can redirect the capital we intended to deploy in Boston," Billings reiterated, as obtained by the NBC Boston. This development comes even as Wynn paid significant sums to the city in the past, including an initial fee of $30 million and annual totals nearing $26.9 million for fiscal year 2024, excluding meal and room taxes from the casino.
On the city's side, Mayor Carlo De Maria is determined to secure a favorable deal for the Everett community, balancing Wynn's corporate interests with the welfare of the residents. "I am glad that business is good at Encore, but I am in the business of reaching the best deal for the residents of my hometown," De Maria said in a statement reported by the Boston Globe. The expansion's pause comes amidst active negotiations, without a clear path forward as of yet.
The impasse also casts a shadow on the future development of the area, which is poised to undergo a significant transformation with the potential construction of a new stadium for the New England Revolution. Interestingly, Wynn owns land across from the casino that could be involved in the stadium's development though; with the current tensions, the progression of these plans remains uncertain. The company's prior ambitions for the site included additional hotels, restaurants, and shops, indicating the magnitude of Wynn's vision for the Lower Broadway area.
