Wynn Resorts Pays Up Over Nevada Claims of Sexual Misconduct

Wynn Resorts
Wynn Resorts has been hit with a record fine of $20m by the Nevada Gaming Commission for failing to deal with sexual misconduct allegations

30-second summary

  • Steve Wynn was accused of sexual misconduct
  • Wynn Resorts executives failed to report allegations
  • The former president resigned last year
  • A settlement has now been reached
  • Wynn Resorts has agreed to pay an undisclosed fine

Despite the founder and former president Steve Wynn resigning last year, the Nevada Gaming Control Board (NGCB) has continued to pursue a claim against Wynn Resorts. Today it admitted that executives failed to report sexual misconduct allegations and therefore failed to comply with Nevada gaming laws.

“Decades-long pattern”

Steve Wynn began his casino career in Las Vegas in the 1960s, where he went on to build some of the most iconic landmarks such as Treasure Island, the Bellagio and the Mirage.

Now 77 years old, his signature still remains the company logo although Wynn Resorts now focuses most of its efforts on its two resorts in Macau, where it is one of only six companies to hold a casino license there.

Shortly before his resignation, the Wall Street Journal alleged in January 2018 that there had been a decades-long pattern of sexual misconduct” by Wynn.

Settlements

Karen Wells, head of the Gaming Commission’s investigations bureau, told the commission earlier this year that Wynn had paid a private $7.5m settlement to a manicurist to resolve a sexual harassment allegation that occurred in 2005 and resulted in a pregnancy. That payment had not been disclosed during the original casino licensing process.

The report detailed seven allegations against the casino mogul, including that former executives failed to investigate an allegation by a cocktail server of a non-consensual sexual relationship between 2005 and 2006. This led to Wynn paying a further private settlement of $975,000 to the woman and her parents.

The control board’s settlement with Wynn Resorts does not revoke or limit its gambling license, but requires the company to pay a fine. The figure is as of yet unknown.

No longer with the company

Wynn Resorts said in a statement the closing of the board’s investigation was “an important remedial step” and noted that any employees named in the control board’s report as having been aware of the allegations but who failed to investigate or report them are “no longer with the company”.

“We have fully cooperated and been transparent with the board in this in-depth investigation. We look forward to appearing before the Nevada Gaming Commission to review the settlement and establish the final resolution of the investigation,” the statement said.

Wynn has since sued the Massachusetts Gaming Commission over the release of a report on its investigation, arguing it contains confidential information that is protected by lawyer-client privilege.

The report has been temporarily blocked by a Nevada judge from being released.

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