Federal Judge Dismisses Cheating Lawsuit Worth $1B Filed against Wynn Resorts

Federal Judge Dismisses Cheating Lawsuit Worth $1B Filed against Wynn Resorts

A federal judge recently dismissed a case against Wynn Resorts related to cheating to get a gambling license. Sterling Suffolk filed the lawsuit in an MA federal court which alleged that the gambling license obtained by the casino giant is illegal.

A cheating scandal without merit

Wynn Resorts is one of the most profitable gambling companies in the US but has recently received flak because of its involvement in many scandals. It includes a sexual misconduct allegation against its former owner Steve Wynn. The current legal case is related to the Encore Boston Harbor Casino-Resort, built-in Everett in the state of Massachusetts. It opened its doors to the world earlier this year and immediately gained success.

Federal Judge Dismisses Cheating Lawsuit Filed against Wynn Resorts

However, Sterling Suffolk alleged that its gambling license was the product of corruption at the Massachusetts Gambling Commission. The company alleged that Wynn Resorts used illegal methods to obtain the license, including political cronyism and kickbacks. It also said that the company hid allegations against Steve Wynn. Their most scandalous allegation was that Everett’s mayor had a hidden ownership stake in the casino.

Sterling filed a lawsuit asking for $1 billion. The company believes that it could have made at least this amount in profits had Wynn Resorts not won the license. Note that Sterling is a partner of Mohegan Sun, a popular casino operated by the Mohegan tribe.

More allegations against Wynn

As soon as the casino opened, it faced allegations of cheating players. One person filed a lawsuit against the company, suggesting that its Everette casino did not make full slot payments to the players. However, this lawsuit was dropped later. Interestingly, the company was investigated by the FBI because they connected a portion of their Everette resort land to an individual with ties to organized crime. The issue was later resolved.

US District Judge Patti Saris also dropped the Sterling lawsuit. She said that Sterling might continue with some parts of their claim in a state court. However, she will not allow it to amend its complaint in the federal court again. She added,

“The Court finds that SSR has already had a fair opportunity to plead a viable set of claims but has failed to do so.”

Wynn still needs to sort two other lawsuits against the company pending in state courts. It is unclear if Sterling will continue fighting for their cause from here on.

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