Former owners of Everett casino property lose legal bid for millions in extra payments for the land

A Suffolk Supreme Court judge has given former owners of Boston Harbor Encore casino property a losing hand to raise up to $ 40 million for the land.

Judge Kenneth Salinger on June 16 dismissed a lawsuit against the Massachusetts Gaming Commission by an owner group called FBT Everett Realty LLC that alleged it was wronged when casino operator Wynn Resorts signed an agreement to purchase nearly 35 acres at Mystic River renegotiated in Everett. Wynn had originally agreed to pay $ 75 million for the land, but later changed the price to $ 35 million after it became known about Charles Lightbody – a wealthy local businessman with a criminal record that includes numerous convictions ranging from assault to a role in a large identity theft ring – was an investor in FBT.

FBT’s directors blame the Gambling Commission for causing Wynn to lower the price, allegedly to what the land could be sold for if it were bought to be a big box business instead of a lucrative one To become highly regulated casinos – a sale that does not require commission review. FBT argued that this sharp price cut represented an unfair “regulatory takeover” by the Commission and that Lightbody was no longer an investor in the property at that point. After Lightbody and two FBT partners were acquitted in 2016 of charges accusing them of hiding Lightbody’s interest in the property, FBT sued the commission for the purpose of gaining the millions more it allegedly owed it led to years of legal saga.

In his ruling, Salinger wrote that FBT could not expect its land to be used for a casino when it paid $ 8 million to purchase the heavily contaminated property in 2009 because casinos were illegal in Massachusetts at the time. FBT studied the development of the property for a number of uses, including a recycling facility or a big box business. Wynn became interested in the site within a year of signing the state’s Casino Act in 2011. The Nevada-based casino operator paid FBT $ 100,000 per month to retain the right to purchase the land for $ 75 million when it received the stated casino license for the greater Boston area.

Commission staff started background checks and learned that Lightbody may have an interest in FBT. The community of owners denied this, saying he was no longer involved in the property. Commission investigators remained skeptical and worked with Wynn to address their concerns. As a result, FBT and Wynn changed their agreement in late 2013 and lowered the purchase price to $ 35 million. Wynn won the Greater Boston License in 2014 and opened its casino with a view of the Mystic in 2019.

A lawyer from FBT could not be reached for comment. Representatives from Wynn and the Gambling Commission made brief statements saying they were satisfied with Salinger’s decision.

Jon Chesto can be reached at [email protected]. Follow him on Twitter @jonchesto.