Inside Asian Gaming

MAY 2018 INSIDE ASIAN GAMING 53 Every entity and individual associated with gaming, even if sometimes loosely, has had, at some point in its life, to produce evidence of its adequacy to pursue certain business or to take on a position. gaming in the states of Nevada and Massachusetts. Pending such investigations, Mr Wynn resigned from all his positions in Wynn Resorts Limited and eventually disposed of his entire shareholding in the company. Less than two months after WSJ broke the story for the first time, Mr Wynn, once a gaming industry legend, was no more. The downfall of Mr Wynn was not limited to the United States either. It instead took on a global dimension when, on 7 February, he resigned from his position of Director, Chairman of the board of directors and Chief Executive Officer of Wynn Resorts (Macau) S.A. – the licensed entity that operates the Wynn casinos in Macau – and from its Hong Kong listed controlling shareholder, Wynn Macau Limited. According to the company’s announcement to the Hong Kong Stock Exchange, Mr Wynn’s decision was taken as “a result of recent publicity”. His resignation was “reluctantly accepted” by the board despite no investigation into Mr Wynn’s suitability having been announced by the Macau gaming regulator. In fact, none of the allegations made against Mr Wynn referenced any misconduct that had taken place in Macau or involved any employees of its Macau entity. Following the announcement, word broke on the street that a decision ruling Mr Wynn unsuitable by a US regulator would no doubt put in peril its Macau gaming license. Curiously, opinions concurred in attributing such risk not to an incoming objective judgement of the Macau authorities on Mr Wynn’s adequacy to operate casinos, but rather to the current geopolitical situation. In other words, Wynn would be a victim of current US/China trade relations and its properties are ripe for the rescue by a white knight riding on Chinese capital. Despite the shocking nature of Mr Wynn’s alleged behavior, his demise will no doubt serve as a case study on the issue of suitability in the gaming industry. From the several legal, business and ethical ramifications of the topic, there are two that draw my attention. Firstly, I believe it is important to understand the importance that regulators place on a review of character versus the publicity drawn to such character in one’s assessment of suitability. Using Mr Wynn’s example: what truly prompted the investigations on his suitability? Was it the obvious wrongfulness of his alleged conduct and the lack of good character it implies or the adverse publicity it drew to the company he chaired and the jurisdictions where it operated? The discussion may seem purely theoretical. It certainly seems so in the case of Mr Wynn, as the result would likely be RULES OF THE GAME