- Wynn Resorts is moving forward with an expansion project across Boston Encore Harbor.
- The expansion includes the construction of a poker room and a retail sportsbook.
- Wynn recently completed the sale of the real estate assets of Boston Encore Harbor to Realty Income.
Wynn Resorts has filed plans for the expansion of its Everett casino.
The gambling giant is looking to build an entertainment complex across the street where its Boston Encore Harbor casino is located. The 1.8 million square foot project includes two hotels with ballrooms, three parking garages, a theater, restaurants and clubs, a poker room, and a retail sportsbook
Wynn’s initial plan was only for an entertainment complex but the company decided to add gambling after it applied for a sports betting license in the state. Last week, Boston Encore Harbor – with WynnBET as its retail sports betting partner, became the first of the state’s three casinos to receive a retail sports betting license.
The plan is progressing after the Everett Planning Board approved a site plan last week. A vote on the zoning change that would allow gambling at the 13-acre site could come during this week’s City Council meeting.
Wynn Moving Forward With Expansion
Massachusetts: Wynn seeking to move forward with proposed Encore Boston Harbor expansion https://t.co/jLkBTOkLOd
— Yogonet Gaming News (@YogonetNews) December 12, 2022
According to the company, the first phase of the project would include the construction of a 2,100-space parking garage, a retail sportsbook, a poker room, a nightclub with a 1,000-person capacity, a roof deck day club, a 980-seat theater, and a 200-seat comedy club. The second phase would include two hotels- one with 500 rooms and the other with 500, with each hotel having its own ballroom. The final block would consist of a two-story building with restaurants and shops.
The project would be connected to the Boston Encore Harbor via a pedestrian bridge over Broadway. Big Night Entertainment Group would be in charge of most of the operations in the expansion, excluding the Poker room and sportsbook. Big Night is reportedly moving its Memoire Night Club from the casino to a new club space in the building.
Wynn says that the first phase of the project could bring in $3.6 million in new property taxes for the city while the second phase would bring in another $10.8 million in revenue to the city. The expansion will also create an estimated 800 people in various establishments in the building.
Wynn Sells Boston Harbor Real Estate Assets
Wynn sells Encore Boston Harbor real estate assets for $1.7bn https://t.co/BNxjFrOdzA
— Gambling Insider (@G_Insider) December 2, 2022
Wynn’s expansion plans were revealed shortly after the company completed the sale of the real estate assets of the Boston Encore Harbor. The deal, which was first announced last February, transfers the ownership of Boston Encore Harbor to Realty Income with Wynn Resorts keeping the operations of the Everett gambling facility.
Under the $1.7 billion all-cash deal, Wynn Resorts will continue to operate the Boston Encore Harbor under a triple net lease agreement worth $100 million over 30 years with another 30-year option to renew. The rent will escalate at a rate of 1.75% for the first decade, and the greater between 1.75% and the Consumer Price Index (CPI), capped at 2.5% over the remainder of the lease term.
Realty Income has over 11,700 real property assets owned under a long-term lease agreement. However, the Boston Encore Harbor deal is the first sale-leaseback deal involving a gaming facility for the real estate investment trust company. Meanwhile, Wynn gains much-needed liquidity from the deal, especially with a massive expansion project looming in Everett.
