Wynn Resorts Fined $35 Million By Massachusetts Gaming CommissionWynn Resorts Will Keep It's Gaming License In The State, Encore Boston Harbor Will Open As Scheduled |
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In February, the Nevada Gaming Control board levied a record-setting $20 million fine against Wynn Resorts for its founder’s alleged sexual misconduct. The Massachusetts Gaming Commission decided to one-up its Nevada counterpart.
After completing an investigation into the company’s knowledge and handling of Steve Wynn’s sexual misconduct allegations, the Massachusetts Gaming Commission decided to fine Wynn Resorts $35 million and will allow them to keep their gaming license. Current CEO Matt Maddox was personally fined $500,000 by the commission.
The fines are steep, but keeping the gaming license is what the company really cared about. The company sank $2.6 billion into Encore Boston Harbor, which is located just six miles north of Boston and scheduled to open on June 23.
Before the decision, there were doubts as to whether or not it would open. Now, it will open on schedule. The casino is expected to employ about 5,800 people and generate hundreds of millions in tax dollars for the state.
The commission filed a 54-page report on Tuesday afternoon. Although the commission was “troubled by systemic failures and pervasive culture of non-disclosure” at the company, they determined that the steps that it took to right their previous wrongs were enough to be suitable to run a business in the state.
The decision from Massachusetts comes several weeks after Wynn Resorts announced a plan to ban Steve Wynn from all of the Wynn Resorts properties.
One of the major changes that Maddox made in the wake of the allegations was bringing in an influx of new board members, including three that were women. The board is now 50 percent women.
In fact, the only two people remaining on the board from when the company first applied for a license in Massachusetts are Maddox and Elaine Wynn, the founder’s ex-wife. The commission felt that those two individuals were suitable.
While Massachusetts felt that Wynn Resorts were capable enough to run a company in their state, they are going to force Maddox to hire an executive coach to help focus on leadership development. They are also forcing the company to keep the roles of chairman and CEO separate for the duration of the 15-year license.
Wynn Resorts released a statement in response to the fine that said they “received a copy of the Massachusetts Gaming Commission’s decision on suitability late today” and that they are “in the process of reviewing that decision and considering the full range of our next steps.”
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