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Wynn Resorts Comes Out on Top in Slot Machine Payout Battle

In a legal battle that spanned several years, Wynn Resorts has emerged victorious in a lawsuit against its casino, Encore Boston Harbor, regarding slot machine payouts. The focus of the lawsuit was on claims made by plaintiff A. Richard Schuster, who alleged that the casino’s ticket redemption practices violated Massachusetts consumer protection laws.

Schuster contended that the casino’s refusal to provide coins at its ticket redemption units (TRUs) when redeeming slot machine vouchers amounted to cheating customers. The US First Circuit Court of Appeals ultimately ruled in favor of Wynn Resorts, with Circuit Judge Lara Montecalvo leading a three-judge panel that agreed Schuster’s claims lacked legal basis.

The issue at hand revolved around the TRUs at the casino, which did not dispense exact change. Instead, they issued a second voucher for any amount remaining under a dollar. Schuster argued that this system violated both the casino’s policies and Massachusetts gambling laws, misleading customers by not providing full cash payouts.

This lawsuit was just one of many legal challenges Schuster had brought against Encore Boston Harbor. Wynn Resorts had the case moved to federal court, where a district judge ruled in the casino’s favor earlier in the year. The appeal was heard in January 2024, and the First Circuit Court reached its final decision in September, determining that Encore’s redemption practices were in line with industry standards and did not violate any federal or state laws.

The court’s ruling emphasized that Massachusetts gaming regulations allowed vouchers to be classified as “funds” under the law, thereby legitimizing the casino’s actions. Despite the lengthy legal battle, Wynn Resorts can now put this matter to rest and continue operating within the bounds of the law.

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