U.S. District Court Chief Judge Patti Saris says Sterling Suffolk Racecourse's allegations do not constitute racketeering violations under the federal RICO act.
Sterling Suffolk says it's "exploring all its options." Wynn Resorts declined to comment.
Sterling Suffolk proposed building a Mohegan Sun casino on the Suffolk Downs horse track in Boston.
It argued Wynn Resorts fraudulently obtained its license through "unlawful methods," including kickbacks, political cronyism, and concealing allegations of sexual misconduct against company founder Steve Wynn.
Massachusetts fined the company $35.5 million for failing to disclose the allegations but allowed it to keep its license.
Steve Wynn resigned as CEO but denies the allegations against him.
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