Caesars Entertainment (CZR) has backed out of an attempt to win a casino permit with a horse-racing track operator in Boston after the Massachusetts Gaming Commission recommended that Caesars not be licensed in the state.
Caesars CEO Gary Loveman said one reason for Massachusetts' decision was concern about the company's finances - it has $23B in debt - while another was the alleged ties to Russian organized crime at Gansevoort Hotel, with which Ceasars was involved in a project in Las Vegas.
Caesars has dropped Gansevoort from that scheme, but that wasn't enough for Massachusetts' regulators.
Caesars was competing to build the $1B casino in partnership with the Suffolk Downs racetrack, in which Caesars has a stake. Suffolk Downs could now partner with another operator, such as Wynn Resorts (WYNN), which is also vying for the license in the Massachusetts.