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AP Photo/Charles Krupa, File BOSTON Casino mogul Steve Wynn and the company he founded lied and covered up misconduct to dupe Massachusetts into granting a license for a $2 billion casino, a former rival alleges in a federal lawsuit. The lawsuit, filed Monday in Bostons federal court, says Sterling Suffolk Racecourse would have prevailed over Wynn Resorts had there been an honest competition. Instead, Wynn Resorts fixed the application process and concealed Wynns sexual misconduct to illegally secure a license for the Everett casino thats scheduled to open in June, the lawsuit alleges. Wynn resigned as chairman and chief executive of Wynn Resorts in February, and the company renamed its casino from Wynn Boston Harbor to Encore Boston Harbor after sexual misconduct allegations surfaced against him. Wynn denies the allegations. Wynn Resorts said in a statement Tuesday that the claims are frivolous and it will mount a vigorous defense. The lawsuit filed by Sterling Suffolk Racecourse, which operates horse racing at Suffolk Downs, claims Wynn would have been disqualified had the company disclosed a Mafia associates financial interest in the casino site or Wynns pattern of sexual abuse and its cover-up. It says that the Suffolk Downs race track was by far the best suited location for a casino, noting that the Wynn casino is being built at the site of a former Monsanto chemical plant. Sterling Suffolk says Wynn Resorts actions hurt its company to the tune of more than a billion dollars. Sterling Suffolk sold Suffolk Downs last year for dramatically less than had it won the casino license, the company says. The Wynn Defendants were granted a license to operate their casino on a toxic waste site loaded with levels of arsenic still so high that a child day care center would not be permitted to be housed there, even after the site was remediated and the regulations amended to countenance higher levels, says the lawsuit, which alleges Wynn broke racketeering laws. A lawyer for Sterling Suffolk Racecourse didnt immediately respond to an email Tuesday.
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But are the economic advantages of the Tiverton casino likely to overcome its perceived social drawbacks? If theres economic opportunity, it should probably be seized. When in Rome As casino expansion reaches its limits, though, towns like Tiverton that turn to gambling to escape their problems may discover that they have accepted a suckers bet: a local economy drained of vitality and dynamism, a town defined by nothing more than the presence of its casino, and a dwindling flow of cash to show for it all. Jennifer McGirr-Cournoyer, who moved to Tiverton two years ago with her young family, says her town is like many small towns in Rhode Island. Property taxes are high and a lot of people were looking for tax relief, she says. Yes, the idea of a casino disgusts me.
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