Wynn Resorts has been fined US$35 million by the Massachusetts Gaming Commission for its failure to report allegations of sexual abuse against former Chairman and CEO Steve Wynn, but has been allowed to retain its state gaming license.
The fine is almost double the US$20 million fine imposed by the Nevada Gaming Commission in February – itself the largest ever imposed by the state of Nevada – with Massachusetts authorities also demanding Wynn Resorts be subject to independent monitoring of its policies and organizational changes as well as providing timely reports of board and committee meetings. CEO Matt Maddox has been fined an additional US$500,000.
In a 54-page decision released on Tuesday US-time, the Massachusetts Gaming Commission said it was “troubled” by the company’s past governance failures but did not believe they were worthy of having its gaming license revoked.
“Given our findings, it is now in the interest of the Commonwealth that the gaming licensee move forward in establishing and maintaining a successful gaming establishment in Massachusetts,” it read.
The decision means Wynn Resorts can now move forward with the upcoming launch of its US$2.6 billion Encore Boston Harbor in June.
The action taken by regulators in both states relates to complaints against Steve Wynn by seven female employees who worked for the company as cocktail waitresses, flight attendants or therapists at Encore Spa and Wynn Salon between 2005 and 2016.
Steve Wynn was later revealed to have paid a US$7.5 million settlement to one employee who fell pregnant after alleging she was raped by him in 2005, while a second employee was paid a US$975,000 settlement in 2006 for allegedly being pressured into sex. Wynn stepped down from the board shortly after the sexual misconduct allegations first emerged early last year and sold off his entire 12.1% stake in the company.
RelatedPosts
