Twice in the past three years, Steve Wynn has pulled out of a casino project in Philadelphia. I don’t blame him. It’s a saturated market and trying to recoup the costs of a $926 million project in a timely manner would be a long shot. The Philly market is 
squishy soft these days, as are other Pennsylvania markets. State Sen. Joseph Scarnati (R) is calling for a study “make recommendations regarding possible amendments to Pennsylvania’s laws in order that we maximize profit and enforcement.” (Read: Lower taxes?) A Wynn spokesman said the pullout would not impact Wynn’s casino push in Everett. In Massachusetts*, he’ll have a protected oligopoly and will be sitting on Boston’s back porch. Also, Wynn has a history of being skittish when juggling multiple casino developments at once. Opening Bellagio and Beau Rivage in close succession left him vulnerable to Kirk Kerkorian, and the thought of keeping Wynn Palace in Macao Everett and Philadelphia all in the air at one may have been too worrisome for his comfort. Looking further down the road, I don’t think Wynn is serious about investing in Chicago (the returns are too low) … but Houston and Dallas? That’s a horse of a different color. As for Philadelphians, they still have five other casino projects from which to choose.
(*–Here is the text of a dazzling oration which Wynn gave the Massachusetts Gaming Commission. It’s a real stemwinder.)
Up in the Boston area, Suffolk Downs is going to have to renegotiate its host-community agreement with Revere. The existing HCA reflects a time when the casino portion of the project would have sat in East Boston, whose voters rejected it. It could mean a windfall for Revere and Suffolk Downs intends to get it done before year’s end rather than ask for an extenstion. Easties, meanwhile, find themselves on the outside looking in, bereft of even a surrounding-community agreement. Racino opponents hope to scotch Suffolk Downs using this clause from state law: “If a proposed gaming establishment is situated in two or more cities or towns [the applicant must negotiate a hosting deal with each community] and receive a certified and binding vote on a ballot question at an election held in each host community in favor of such a license.” Suffolk has to cope with this, redesign the project and find a developer. Right now it’s trying to decide between Hard Rock International and Rush Street Gaming. The latter is licensed in Massachusetts already, so that appears to give it a big leg up.
Life after Caesars. In the case of Atlantic City‘s venerable Claridge Hotel, it’s reinvention as a family friendly destination by the shore. Caesars Entertainment and TJM Properties are still keeping the sale price under wraps, though.
