Caesars Entertainment, the Las Vegas gambling giant, has lodged new discrimination allegations against the state’s top casino regulator, saying in an amended federal lawsuit that the regulator had personally urged Caesars’ competitor, Steve Wynn, to stay in the contentious application process.
The regulator, Stephen Crosby, chairman of the state gambling commission, has personal ties to the Everett land owner who could see significant financial benefits from the sale of his property to Wynn, if Wynn is successful at winning the sole casino license for Eastern Massachusetts.
The amended lawsuit claims that Crosby called Wynn in October, after the casino mogul suggested at a hearing he may not pursue one of three state casino licenses if the board intended to require local casino operators to follow Massachusetts law in other jurisdictions. Wynn and another Massachusetts applicant, MGM, run highly profitable casinos in Macau, China, where gambling regulations are significantly different than in the United States.
Crosby “took it upon himself to place a call to Wynn and to ask Wynn to remain in the Massachusetts license process,” according to the complaint.
Crosby has also voluntarily defended Wynn in news stories related to the ownership of the Everett land, according to the new portions of the lawsuit. Caesars, which filed the original lawsuit in mid-December, was dropped from the Suffolk Downs project in East Boston after investigators for the gambling commission raised red flags about the company during background checks.
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