Wynn Resorts’s CEO Steve Wynn has been the subject of sexual allegations that emerged late last week and those reports have spurred the Massachusetts gaming panel to make a decision to review the company’s current project that is being developed in Everett, Massachusetts. Wynn Resorts has campaigned hard and invested heavily to develop its $2.4 billion casino resort in the state. Since the report was released, Wynn Resorts’ stock slipped down 10 percent.
Gaming Panel To Review Wynn Resorts License
The Wall Street Journal released a report last week unveiling dozens of accounts of women working at Wynn Resorts that detailed Steve Wynn’s sexual assaults and advances towards them. One of the reports includes a testimony by a manicurist who was forced to undress and perform sexual acts with the CEO and was later dismissed with a $7.5 million settlement.
The sexual allegations against Wynn have already reached the state panel governing the Wynn Resorts’ latest project and according to Elaine Driscoll, spokesperson of the Massachusetts Gaming Commission (MGC), they have already launched a review into the matter. However, the commission is not responsible for dealing with criminal activities and will most likely get feedback from their counterparts in Nevada.
In a statement, Driscoll said “The suitability and integrity of our gaming licensees is of the utmost importance, and ensuring that suitability is an active and on-going process. Consequently, the MGC’s Investigations and Enforcement Bureau will conduct a regulatory review of this matter to determine the appropriate next steps.”
Under Massachusetts’ gaming law, the character, integrity, and reputation of all CEOs and directors of a company will be considered when a casino operator applies for a license. The gaming panel conducted this review in 2014 and Wynn Resorts’ key officials including Steve Wynn passed the suitability review of the panel and the company was awarded a state casino license to build the $2.4 billion Wynn Boston Harbor Resort. The resort is set to open in 2019.
Even though the license has already been awarded, MGC holds the right to revoke the license if the applicant has failed to meet the standards of suitability that they have set. Standards of suitability as defined by the Massachusetts gaming law includes prior acts of applicants that they have not been persecuted or convicted for, and other patterns of behaviour that the MGC deems as misconduct.
Wynn Resorts Issues Response To Allegations
Wynn Resorts issued a response to the allegations and said that the company is committed to upholding the highest ethical standards and safeguarding its 23,000 employees all over the world. The company also stated that they require all their staff to undergo an annual anti-harassment training to create a safe working environment, especially for the women. The whistle-blower claimed in the Wall Street Journal article that she reported the sexual conduct to the company’s human resources division but Wynn Resorts claims that no complaints against Chairman Steve Wynn have been made through its anonymous hotline.
While the MGC has confirmed that they will review the allegations and check if Wynn Resorts can continue with their license, gaming experts believe that it is highly unlikely that Wynn Resorts’ performance will be affected by the scandal. Roger Gros, publisher of the Global Gaming Business magazine said that Wynn pretty much had the board “in his pocket” and that he will be safe from the allegations. He also added that people, who go to Wynn Resorts properties, go for the luxurious experience and might not even be familiar with Wynn.
Steve Wynn Denies All Allegations
Steve Wynn has also denied the allegations and claimed that the allegations are all part of a ploy by his former wife. Elaine Wynn is currently in a legal fight with Steve Wynn over her share of stocks in Wynn Resorts. Steve Wynn claims that Elaine has publicly threated to slander and destroy him and this media storm that has been brought upon him is her doing.
Elaine Wynn declined to respond to these allegations but her attorney as stated that her former husband’s accusations against her were not true. Steve Wynn is the largest investor in Wynn Resorts and his stakes in the company comes to nearly 12 percent. Wynn Resorts have yet to come up with announcement whether they will be taking any action against him.
On the political side of things, Wynn has reportedly resigned as the Republican National Committee (RNC) finance chair after the sexual allegations were circulated.

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