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Posted April 28, 2014 to April Gardner
Steve Wynn is one of the gambling tycoons trying to get a license in Massachusetts to run the casino. Competing with Wynn Resorts is Mohegan Sun, a tribal game company that is also competing for a Massachusetts license.
Last week, both gaming companies were resolving an issue with how the state plans to regulate players' winnings. There is now a law that requires players who win more than $ 600 to sign a tax form and immediately withhold tax on their winnings.
Steve Wynn, who runs casinos in Las Vegas and around the world, believes the tax law will prevent players from playing at casinos in Massachusetts. MGM joined Wynn in their efforts to change the rules.
"It is functionally impossible to interrupt play after each hand to be reported or suspended," Wynn Resorts said in a letter to regulators.
The Massachusetts Gambling Commission has acknowledged that the regulation can be a nuisance for both casinos and players. They also argued that the aim is to regulate taxes on winnings in a similar way to state casinos in neighboring states.
"We anticipate Massachusetts will follow the practices of other states," said Revenue Department spokeswoman Maryann Merigan.
The federal standard allows players at a lower level than the current 5% tax on winnings above $ 600, which is in effect in Massachusetts.
Mohegan Sun, who runs a casino in nearby Connecticut, also wants to win a Massachusetts gaming license and they attacked Wynn personally for his tax position.
"The rules were established long before the operator submitted their license applications," said Mitchell Etess, CEO of the Mohegan Gaming Authority. "Steve Wynn obviously wants to have his own rules."