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BOSTON, MA - MAY 8: A view of the Encore Boston Harbor casino in Everett is seen from the water of Boston Harbor on May 8, 2019. (Photo by David L. Ryan/The Boston Globe via Getty Images)

Wynn Resorts executives are in talks about a possible sale of its yet-to-be-opened $2.6 billion casino just outside of Boston to MGM Resorts, the two companies announced in a joint statement on Friday.

In early May, Wynn CEO Matt Maddox and MGM CEO Jim Murren met in person in Las Vegas to explore the possibility of a sale, according to The Boston Globe.

“Over the past several weeks, we have engaged in conversations around the potential sale of Encore Boston Harbor,” the statement reads. The companies add that the talks are “very preliminary” and the casino giants do not know “where these conversations will lead.”

Encore’s license is the only one the state will allow in the Boston area, making it highly desirable. MGM, on the other hand, owns the only casino license for Western Massachusetts for its Springfield location.

According to Massachusetts law, a company can only hold one casino license. MGM did not comment, but if it buys the Encore casino it would have to sell its license for a casino in Springfield, Massachusetts.

The announcement comes two weeks after the Massachusetts Gaming Commission ruled that Wynn Resorts could retain its gaming license to operate the Encore casino. Gaming regulators had questioned Wynn Resorts’ eligibility to hold a gaming license in the state after a Massachusetts Gaming Commission investigation found that former Wynn executives participated in a scheme to pay off and silence employees who alleged sexual assault and inappropriate behavior by company cofounder Steve Wynn.

Multiple women who alleged misconduct, including rape, received payments after signing non-disclosure agreements. Steve Wynn has denied all allegations against him, but he resigned as CEO and divested his stake in the company in 2018.

Wynn Resorts cooperated with Massachusetts gaming regulators’ investigation and did not contest any of the facts in the report. The company also did not pay Steve Wynn severance and arranged for his stake in the company to be liquidated. In response to the allegations, the company said it made changes to its executive organization and company culture.   

“Wynn Resorts has changed from a founder-led organization to a global enterprise overseen by a capable, independent and accountable Board of Directors,” the company said in a statement released in April 2019.

The Massachusetts Gaming Commission decided that Wynn Resorts would be allowed to keep its license as long as it paid a $35 million fine and agreed to pay for an independent monitor to review and evaluate the company’s policies. The company must also provide training to prevent harassment for executives and employees. The ruling came after a year-long investigation, a three-day hearing with Wynn executives, and a monthlong deliberation.