The Nevada Gaming Control Board has opened a probe into the recently emerged sexual misconduct allegations against Steve Wynn, the regulatory body confirmed on Tuesday.
In a statement, the Nevada Gaming Control Board Chairwoman, Becky Harris, said that they are committed to conducting their investigation “in a thorough and judicious manner”. The announcement about the probe comes shortly after the regulator carried out a preliminary review of the matter.
The Wall Street Journal published Friday a report detailing multiple incidents of Mr. Wynn forcing himself upon former and current employees at Wynn Resorts. One of the incidents ended with a $7.5-million settlement paid by the businessman to a former manicurist at Wynn Las Vegas. The businessman is the founder, CEO, and Chairman of Wynn Resorts.
Following the publication of the sexual harassment report, the Massachusetts Gaming Commission announced over the weekend that it would investigate the matter and review the appropriateness of Wynn Resorts’ participation in the state’s commercial gambling industry. The operator is currently developing a $2.4-billion integrated resort near Boston. The property is slated to open doors in the spring of 2019. However, a review of Wynn Resorts’ license could put the whole scheme into serious risk.
The Macau Gaming Inspection and Coordination Bureau also confirmed that it was reviewing the sexual misconduct allegations against Mr. Wynn and that it was deeply concerned by these. Through its subsidiary, Wynn Macau, Wynn Resorts currently operates two integrated resorts in the special administrative region, known to be the only Chinese territory where casino gambling is legal. In fact, earnings from Wynn Resorts’ Macau operations account for the greater portion of the company’s overall earnings.
Possible Outcomes from the Regulatory Probes
The regulatory investigations into Mr. Wynn’s sexual misconduct have already affected Wynn Resorts’ share price, which tumbled down from $201.99 per share on Friday morning to a little over $171 at market closure on Tuesday.
The Nevada Gaming Control Board initiating a review into the sexual allegations against Mr. Wynn stirred speculations of the potential ouster of the casino mogul from the Board of his company. According to analysts and gambling officials, it has been on a rare occasion that the state’s gambling regulator has required a gambling executive be removed from their company’s board.
In fact, this happened only once before, when the former CEO of CG Technology, Lee Amaitis, was ousted from the sports betting company’s Board after the Nevada Gaming Control Board had insisted on the move.
The regulator’s Chairwoman told media Tuesday that their review into the allegations against Mr. Wynn as well as any other probe into any of its licensees and individuals involved in these licensees’ operations could result in financial penalties, the placement of conditions upon the license of an involved company; a license could even be revoked by the gaming regulator.
Robert Johnson is an experienced web author and blogger. He has over three years of experience as a freelance journalist and writer.