Wynn Resorts Prevails in Legal Dispute Over Slot Machine Payouts

Wynn Resorts has won a legal battle against its casino, Encore Boston Harbor, over slot machine payouts. 

Court Confirms Encore Boston Harbor’s Ticket Redemption Practices Are Lawful

The lawsuit, which lasted for several years centered on claims by plaintiff A. Richard Schuster that the casino’s ticket redemption practices broke Massachusetts consumer protection laws. Schuster claimed that the casino’s refusal to give out coins at its ticket redemption units (TRUs) when cashing in slot machine vouchers cheated customers.

The US First Circuit Court of Appeals ruled that the casino did not break any laws backing earlier court decisions that sided with Wynn Resorts. Circuit Judge Lara Montecalvo led the three-judge panel, which agreed that Schuster’s claims had no legal basis. 

The problem came from the casino’s TRUs. These machines did not give out exact change. Instead, they printed a second voucher for any leftover amount under a dollar. Players could cash in this extra voucher at a cashier’s window or put it in another machine. Schuster argued that this setup broke both the casino’s own rules and Massachusetts gambling laws. He said it misled customers by not giving them full cash payouts.

Schuster Faces Defeat Once More Against Wynn Resorts

This lawsuit was the newest in a string of legal challenges Schuster brought against Encore Boston Harbor. 

Wynn moved the case to federal court. A district judge ruled in favor of the casino earlier this year. The court heard Schuster’s appeal in January 2024 and made its final decision in September. The First Circuit decided that Encore’s redemption practices matched industry standards and did not break federal or state laws. The ruling pointed out that Massachusetts gaming rules allow vouchers to be seen as a type of “funds” under the law. This meant the casino’s actions were legal.

Schuster’s earlier complaints had an impact on the odds of the Encore Boston Harbor casino’s blackjack games. Schuster argued about the casino adding 6:5 odds to its blackjack tables. This setup does not favor players as much as the usual 3:2 odds. After he lost this claim, Schuster turned his attention to how the slot machines paid out winnings. But he ended up losing in court again.

With the chances of the US Supreme Court taking up the case looking slim, this ruling might end Schuster’s legal fight. The decision backs Encore Boston Harbor’s business methods confirming that its operations follow Massachusetts’ rules.