Encore casino expansion put on hold over tax, financial disagreement with Everett

Wynn Resorts has put the expansion of its Encore casino in Everett on hold after failing to reach an agreement with the city on terms like taxes and impact fees. 

The company has been planning an expansion of its Encore Boston Harbor casino across from Broadway for several years. The development would include two hotels with ballrooms, three parking garages, a theater, restaurants, and clubs, totaling 1.8 million square feet in all.

Wynn CEO Craig Billings announced the breakdown in negotiations with the city in an earnings conference call Tuesday afternoon. 

“On the development across from Encore Boston Harbor, we have put this development on hold for the time being as we have been unable to reach an agreement with local authorities on certain financial terms,” Billings said. “Though it’s disappointing, we have numerous other development projects globally where we can redirect the capital we intended to deploy in Boston.”

The halt in plans comes after the City of Everett and Wynn couldn’t agree on how much the company should pay above what they’ve been paying for the original Encore Boston Harbor building, which opened in 2019, The Boston Globe reported. 

The expansion project has faced setbacks in the past. In 2022, Wynn paused the permitting process for the property to reevaluate if the development was the best use of the site. 

A spokesperson for Wynn told the Globe that the financial terms proposed by the city “simply do not make the project viable, given the other current opportunities we have for deployment of our capital.”

The opening of the original casino was the first phase of a plan to revive the entertainment and dining industry in Everett’s Lower Broadway area, according to the Globe. 

“Earnings for Wynn from Encore continue to be positive and I welcome their interest in expanding operations with the East of Broadway proposal. The further development would enhance the appeal of this area as a destination district with the addition of entertainment space, restaurants, and hotels,” Everett Mayor Carlo DeMaria said in a statement to Boston.com. “I have been very clear with Wynn representatives throughout our negotiations that any agreement regarding this expansion has to be in the best interests of the residents of Everett. I am glad that business is good at Encore, but I am in the business of reaching the best deal for the residents of my hometown.”