Court of Appeals rules in favor of Wynn Resorts in slot machine lawsuit
Regulation · 2024-09-25

Court of Appeals rules in favor of Wynn Resorts in slot machine lawsuit

Casino developer Wynn Resorts has emerged victorious in a five-year lawsuit challenging the slot winnings redemption process at its Encore Boston Harbor Casino in Everett, Massachusetts.

Plaintiff Richard Schuster sued in 2019, claiming that the company violated Massachusetts Gaming Commission regulations by not fully paying out slot machine vouchers. Instead of dispensing coins, the machines print a ticket that players can redeem at the casino cage or through self-service kiosks known as ticket redemption units.

This shift to a coinless system followed a coin shortage caused by the COVID-19 pandemic.

This week, the United States First Circuit Court of Appeals ruled that Encore Boston Harbor did not violate state gaming laws. The judges characterized Schuster’s allegations as “fatally flawed,” confirming that the TRU process does not take any money from patrons.

“The well-reasoned decision of the First Circuit affirming the dismissal of the case reflects the same conclusion that every other court that has heard any part of this case has reached,” Wynn Resorts lead counsel Wayne Dennison told Casino.org. “The gaming practices challenged by the purported class plaintiff were entirely lawful.”

Last week, the company agreed to settle a class-action lawsuit for $70 million, stemming from allegations that the company failed to disclose sexual misconduct claims against former CEO Steve Wynn, which reportedly affected shareholder value.

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