Nevada Gaming Control Board Levies Record-Setting $20 Million Fine Against Wynn ResortsFine Signals End To Nevada's Investigation Into The Handling Of Steve Wynn's Sexual Misconduct |
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Steve Wynn’s alleged sexual misconduct cost his former company a hefty sum from thanks to a fine from Nevada gaming regulators.
On Tuesday, the Nevada Gaming Control Board fined Wynn Resorts Ltd. a record $20 million for failing to investigate Wynn’s misconduct. It’s the largest fine ever given by the state’s regulatory body.
The decision ends more than a year-long saga between the NGCB and Wynn Resorts. Regulators spent more than 12 months investigating the company and how they handled allegations of Wynn’s impropriety.
Before the announcement, the largest fine ever handed out by the NGCB was $5.5 million back in 2014 against CG Technology, a sports betting and mobile gaming system.
According to the Associated Press, some on the gaming commission were pushing for an even bigger fine, but an amount was never disclosed.
“It’s not about one man,” Commissioner Philip Pro told the AP. “It’s about a failure of corporate culture to effectively govern itself as it should.”
The NGCB acknowledged in its Stipulation for Settlement and Order, released last month, that the culture of the company had since changed. Wynn is no longer the CEO of Wynn Resorts, replaced by current CEO Matt Maddox, and there was an influx of new board members, including three new female directors that make up a board of 50 percent women.
Chairman Tony Alamo told the AP that the severity of the allegations prompted the record-setting fine.
“It needs to move needles here,” said Alamo. “It needs to ring across the entire country.”
Wynn was not in attendance and the lawsuits alleging the sexual misconduct against him are still pending. He has denied the accusations.
The Massachusetts Gaming Commission settled a lawsuit with Wynn last week, allowing the organization to make a final decision on the status of Wynn Resorts’ Encore Boston Harbor project. The lawsuit alleged that the commission breached attorney-client privilege to draft a report on the sexual misconduct allegations filed against Wynn.
Wynn Resorts’ gaming license in Massachusetts was rumored to be in jeopardy, but Maddox reassured investors that they would open the Everett casino on schedule in June 2019.
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