It’s been a rough year for Wynn resorts (NASDAQ: WYNN), following accusations of sexual misconduct by CEO Steve Wynn. Following a revelatory article in the Wall Street Journal that revealed multiple women had come forward to accuse Steve Wynn of sexual harassment. One manicurist alleged that the mogul had forced her to have intercourse with him, and he subsequently paid the woman $7.5 million to settle the case.
The accusations have left Wynn Resorts in a precarious position where now regulators from both Massachusetts and Nevada are reviewing the properties gaming licenses and looking into the companies’ responsibility in relation to the accusations. Although Steve Wynn has asked that his name be removed from the gaming licenses, it’s unclear if that will be a solution to the renewed interest from regulators.
Wynn Resorts is nearing completion on Wynn Boston Harbor, but it hasn’t been completed yet. Many investors are talking about the possibility of MGM Resorts (NYSE:MGM) purchasing the Boston casino, and it definitely looks like a good deal.
What’s more, news broke today that the sale today of the Grand Victoria Casino in Elgin, Illinois to Eldorado Resorts. Eldorado is set to pay $327.5 million in cash for the riverboat casino, which it has promised to return to splendor among riverboat casinos.
Whether or not MGM will purchase the Wynn in Boston isn’t known, but it’s in a position to get the casino for even less than the $2.4 billion construction cost based on the difficulties that Wynn is facing at the moment. That definitely makes MGM a stock to watch.
Disclaimer: Stocks to watch does not advise readers whether to buy, sell or hold shares of a particular stock. The author of this article does not have any invested interest in any of the companies listed.