Wynn Resorts Hit by Record US$20 Million Fine in Las Vegas

The Nevada Gaming Commission has fined Wynn Resorts the record amount of US$20 million for its inappropriate handling of sexual misconduct allegations against company co-founder Steve Wynn, who was forced the sever ties with the firm early last year.

The highest fine that the Nevada Gaming Commission had ever issued in the past was US$5.5 million in a 2014 case.

One commissioner commented, “It’s not about one man. It’s about a failure of a corporate culture to effectively govern itself as it should in a responsible manner.” The commission chairman added, “The fine needs to move the needle. It needs to ring across the entire country, outside of our borders.”

One place the fine is definitely ringing is in Boston, where the Massachusetts Gaming Commission is weighing the same issues, but with much higher stakes, since Wynn Resorts is constructing the US$2.6 billion Encore Boston Harbor, and its gaming license hangs in the balance.

Wynn Resorts’ global reputation is also key to its campaign to renew its concession in Macau and to win an IR license in Japan.

Wynn Resorts itself put a positive spin on the Nevada Gaming Commission’s judgement: “We are pleased that the Nevada Gaming Commission has recognized the company’s transformation and ‘refreshed culture’ over the course of the last twelve months and acknowledged the ‘paradigm shift’ that has occurred within the company. The completion of the review by Nevada regulators is an important step forward, and we deeply appreciate the trust and confidence they have placed in the new leadership of Wynn Resorts to grow and prosper.”

The Nevada Gaming Commission may still take punitive action against Steve Wynn personally, but this closes the matter for the firm Wynn Resorts.

In related news, last week the Massachusetts Gaming Commission settled a lawsuit with Steve Wynn, saying that the deal reached would guarantee public access to the report that its investigators have compiled, but have so far been unable to release. (AGB Nippon)