Wynn's Encore Boston Harbor President steps down, Mohegan amends lawsuit over casino license

Encore Boston Harbor announced Wednesday that President Robert DeSalvio left his position, less than five months after the new Everett casino opened in late June. On the same day, Mohegan Sun filed an amended lawsuit against the Massachusetts Gaming Commission to include the panel’s latest review on Wynn Resorts and its founder’s sexual misconduct allegations regarding the Boston-area casino license awarded in 2014.

Wynn Resorts, which owns the casino, said in a news release that DeSalvio “decided to step down” and will be replaced by Brian Gullbrants, a former top Ritz-Carlton executive who’s been running food and beverage at Encore’s luxury hotel. The company will also appoint two additional executives: Jenny Holaday will join Encore Boston Harbor as Executive Vice President of Operations, and Eric Kraus will join the Encore team as Senior Vice President of Communications and Public Affairs, both pending regulatory approval.

Mohegan Sun, which lost out to Wynn in a two-way competition for the Boston-area casino license, filed an amended lawsuit Wednesday that repeats its claim that the Massachusetts Gaming Commission botched the original application process and alleges the panel compounded the misstep by failing to revoke Wynn’s license after investigating sexual misconduct allegations against Steve Wynn, the company’s namesake and former chairman.

After hearing oral arguments, a state Superior Court judge ruled Tuesday in Suffolk, Boston that Mohegan Sun was entitled to amend its original suit.

“To be clear, Mohegan does not seek any judgment from this Court either directing the Commission to grant Mohegan the Region A Category 1 License or otherwise granting Mohegan a gaming license,” the suit says, according to The Day. “Rather, all Mohegan seeks is the overturn of the license grant to Wynn ... after which Mohegan would seek a fair hearing and opportunity to participate in the lawful execution of the (Gaming) Act.”

Mohegan’s amended suit alleges that the gaming commission’s decision in April to uphold its earlier finding that Wynn Resorts was "suitable” to hold a gaming license was “arbitrary, capricious and an abuse of discretion.”

The commission’s review of Wynn Resorts’ suitability followed a Wall Street Journal report in January 2018 of allegations against Steve Wynn, including his 2005 payment of a $7.5 million out-of-court settlement to an employee who had accused him of sexual misconduct. Casino regulators in Nevada, where Wynn Resorts has long operated, also began investigating Steve Wynn, who soon resigned from Wynn Resorts and divested himself of all holdings in the company. On Tuesday, Nevada gaming regulators began a push to ban Steve Wynn from ever operating in the Silver State again.

The Massachusetts Gaming Commission decided in April, a few weeks before the scheduled opening, to allow the casino to keep its license and open in June following a year’s investigation. But the Commission had the company pay a $35 million fine and put further policies in place regarding reporting of sexual assaults.

On Wednesday, Wynn Resorts credited DeSalvio with overseeing a successful opening after five-year-long, high-stakes process, which was not exempt from controversy leading up to the June opening.

"Bob DeSalvio's ability to partner with community leaders and elected officials, assemble a world-class team and lead them to produce and launch a project of the highest quality is remarkable. His unique talent to both manage a complicated construction process while listening to the needs of key stakeholders was essential to our success," said Matt Maddox, CEO of Wynn Resorts. "Bob leaves Encore with a hand-selected team prepared to take on the challenges ahead. I salute him for his commitment to the project and, most importantly, his dedication to his team."

DeSalvio, who previously oversaw the opening of a casino in Bethlehem, Pennsylvania, and was earlier a Foxwoods Resort Casino executive, has been in charge of getting the Encore open for the past five years. The Encore is the priciest private project in the history of Massachusetts, at $2.6 billion, as reported by the Boston Herald.

Brian Gullbrants, new president of the Encore Boston Harbor.

Brian Gullbrants most recently led all hotel and food and beverage operations at Encore, working alongside DeSalvio since the pre-opening phase of the resort. He has experience as a leader at some of the top ranked hotels globally. He led the opening of the hotel at Encore Las Vegas in 2008; his role expanded to oversight of both Wynn Las Vegas and Encore hotels in 2011 as Executive Vice President and General Manager.

Previous to his work with Wynn Resorts, Gullbrants spent 20 years with the Ritz-Carlton Hotel Company where he held various operational, general management and corporate executive positions. As Vice President of Operations, he was responsible for overseeing all operational disciplines for The Ritz-Carlton Company worldwide.