It didn’t take long for Encore Boston Harbor‘s first scandal to accrue. A class-action lawsuit against the casino is challenging its practices, particularly with regard to that eternal flashpoint, 6:5 blackjack. The suit contends that Encore is not complying with Massachusetts law with regard to ’21’ rules and slot payouts.
In the case of the latter, Wynn Resorts is accused for only paying in round dollar amounts and pocketing the change. As for blackjack, Bay State rules require that 6:5 games must be played with one or two decks in the shoe but the lawsuit contends that Encore is loading up with six-shoe decks. It also asserts that, in contravention of state regulations, in which cards should be dealt face down and players are allowed to look at them, Encore is dealing cards face up and players can’t touch them. Concludes the filing, Wynn has imported “traditional rules that are also favorable to the house.” It stands accused of making up its own rules “to maximize the casino’s advantage far in excess of that which is permitted.”
Encore’s response is that it is adhering to Massachusetts Gaming Commission-approved rules and its slot-redemption policies are in line with state rules. As for the MGC, it says it is “aware of the lawsuit and reviewing its content to determine next steps.” The controversial practices certainly didn’t prevent Encore from scoring a blockbuster opening week, not least for state tax coffers.
In other Wynn news, the investor-day pamphlet contains photographs of four Wynn hotels side-by-side and darned if three of them don’t look identical. So it is not surprising that, with regard to the New Frontier site, CEO Matt Maddox said, “We are in active discussion and ideation. In Las Vegas, what comes next can’t be what we’ve had, and I think it’s going to take a while to really understand what is the next great project, but we’re certainly in that process.” In other words, don’t stay up nights waiting for Wynn West to materialize.
* Gaming revenues in Macao hit a sizable speed bump last quarter. VIP winnings were down 16%, a blow somewhat ameliorated by a 19% jump in mass-market slot revenue. The splits were as follow: Sands China — -16% VIP/slots -7%; Wynn Macau: -14%/flat; Melco Resorts & Entertainment: -21%/-5%; MGM China: -14%; +4%. JP Morgan analyst Joseph Greff didn’t report Galaxy Entertainment or Sociedade de Jogos de Macau numbers.
