Inside Asian Gaming

April 2015 inside asian gaming 45 Garnering the rest of the votes could be an uphill battle, as some major investors have expressed concern that, despite his obligation to support her candidacy, Mr Wynn actually wants his former wife off the board and that her re-election would complicate his management of the company. Elaine Wynn Fights to Stay on Board Wynn Resorts Ltd. co-founder Elaine Wynn denied the company’s accusations that she had engaged in improper activity, while seeking shareholders’ support to keep her seat on the board. According to a report in the Wall Street Journal , Ms Wynn, the casino operator’s third-largest shareholder, said in a letter to stockholders that the board “has repeatedly presented a number of insinuations that are without factual basis” and that it was going to “reckless lengths” to exclude her as a director. Wynn Resorts made the allegations against Ms Wynn on 24th March, just after she had arrived in New York to solicit support for her re-election to the board. Wynn Resorts’ board said in February that it had decided not to re-nominate Ms Wynn, who has been a director for more than a dozen years, when her term expires on 24th April. Ms Wynn then nominated herself for the seat and began campaigning, touting her decades of experience, passion and independence, and her role as the company’s sole female director. In a slide presentation posted to the Wynn Resorts website outlining “key considerations” ahead of the annual meeting, the company listed among its concerns with Ms Wynn an allegation that she had sold US$10 million of shares through her personal foundation during a “blackout period” ahead of the company’s earnings release, during which directors are forbidden by company policy to sell common stock. The company also accused Ms Wynn of improper behavior regarding a land deal, alleging she had for several years participated in board meetings in which Wynn Resorts’ plans to acquire property in Las Vegas were discussed while failing to disclose that her nephew was involved in a competing bid which ultimately prevailed. Ms Wynn responded that she is not involved in any foundation matters involving company shares and that the Wynn Resorts board “has been fully aware that the sale by the Foundation takes place each year and that the proceeds go to philanthropic causes.” She added that a company lawyer “knew about the Foundation’s sale of shares during the blackout period and in fact sent an instruction letter to the company’s transfer agent to help consummate such sale.” Ms Wynn also denied impropriety regarding the land deal. In her letter, Ms Wynn also reiterated her denial of the company’s claim that a lawsuit she filed in June 2012 in the U.S. District Court in Nevada against Mr Wynn seeking to dissolve a shareholder agreement put her at odds with the board. The pact, designed to keep Mr. Wynn in control of the company even though he is not its largest shareholder, puts voting and selling restrictions on Ms Wynn’s shares. To keep her spot on the board, Ms Wynn will need to secure more votes than the two other directors up for election. Though she owns a 9.4% stake in Wynn, she said she is already assured of getting more than 19% of the votes because Mr Wynn, who owns 9.9% of the company’s shares, is contractually obligated to vote for her due to the shareholder agreement. T. Rowe Price Associates Inc., not subject to the agreement, is Wynn’s largest shareholder with 16.8%. INTERNATIONAL BRIEFS Elaine Wynn Revel Casino Sale Falls Through Again A US Bankruptcy Court judge rejected an agreement to sell Revel Casino to a Florida developer for US$82 million, marking the third failed deal for the shuttered hotel in New Jersey’s struggling seaside resort of Atlantic City. According to Reuters , Judge Gloria Burns in Camden, New Jersey, said she could not approve the sale because it would interfere with an appeal being pursued by casino tenants who argue that the deal would deny them their property rights. The casino, which cost $2.4 billion to build, struggled from the time it opened in 2012 as neighboring states embraced gambling and siphoned off Atlantic City’s business. Revel was one of four casinos to close last year in Atlantic City, which is struggling with a drastic drop in tax revenue and may face its own bankruptcy. The casino’s advisers were seeking approval of an agreement to sell Revel to Glenn Straub, who agreed to buy it “free and clear” of lease agreements with tenants such as restaurants and nightclubs. Revel had already failed to close two previous sale agreements, one with an affiliate of Brookfield Asset Management, for $110 million, and a $95 million agreement with Mr Straub. After the price was lowered, Mr Straub agreed to the latest deal. Judge Burns said Revel could come back to court and ask her to approve a sale that left the tenant’s leases in place, although she acknowledged Mr Straub has called that a deal-breaker. Tenants argued that other buyers may emerge. Los Angeles developer Izek Shomof has sent an attorney to recent bankruptcy hearings and has said he wants to buy the hotel for $80 million, which he argued would include more favorable terms for creditors than Mr Straub’s deal. The Revel features eye-catching design and had promoted itself as a fine-dining destination in a resort town known for cheap buffets. The concept never caught on, and the current bankruptcy is Revel’s second. The casino closed in September. Atlantic City leaders are desperate to get the hotel open again. The city has struggled to balance its budget, and Governor Chris Christie appointed an emergency manager earlier this year who is being aided by Kevyn Orr, the attorney who took Detroit through its historic bankruptcy.