MassGaming Clears Legal Hurdle, Prepared to Publish Wynn Probe

A Nevada judge dismissed earlier this week a suit filed by Steve Wynn, seeking to stop the publication of a report on sexual harassment allegations leveled against him

The Massachusetts Gaming Commission cleared earlier this week a major obstacle preventing it from finalizing and publishing the results from a probe into the suitability of Wynn Resorts to operate the $2.6 billion Encore Boston Harbor resort.

Clark County District Court Judge Elizabeth Gonzalez dismissed this past Tuesday a case initiated by businessman Steve Wynn, who argued that his former company Wynn Resorts had improperly communicated information to the Massachusetts Gaming Commission that had violated attorney-client privilege.

Mr. Wynn filed his lawsuit last November, while the Massachusetts gaming regulator originally planned to complete and deliver its probe’s findings in December. Judge Gonzalez blocked temporarily the publication of the report as she wanted to hear more from all involved parties before making a final decision. The commission’s investigative team initiated the investigation following the publication of a Wall Street Journal report detailing decades-long pattern of sexual misbehavior by Mr. Wynn.

The billionaire businessman founded Wynn Resorts and served as the company’s CEO until February 2018, when he stepped down following the release of the WSJ article.

MassGaming’s investigative team looked into the sexual harassment allegations leveled against the businessman by Wynn Resorts staff and whether claims that Wynn Resorts intentionally covered harassment incidents were true. The regulator intends to use the findings from the probe to determine whether the Las Vegas hotel and casino operator is suitable to operate Massachusetts’ second full-scale casino.

Off-Court Settlement

The Massachusetts Gaming Commission voted last month to settle the issue with Mr. Wynn’s legal team off the court’s floor. The regulator said back then that its decision was based on its wish to avoid protracted litigation that could have further prevented it from publishing the results from its probe ahead of the planned opening of Encore Boston Harbor.

Wynn Resorts has been selected as the preferred developer and operator of an integrated resort with a full-blown Las Vegas-style casino in in the city of Everett in the lucrative Greater Boston area. The company is set to open its $2.6 billion property in late June.

Commissioners are now expected to move on with the publication of their report in the months preceding the planned launch of the luxury resort.

Wynn Resorts was also a defendant in Mr. Wynn’s suit involving the communication of privileged information. And while the casino operator has cleared that legal hurdle, its court troubles are far from over, with Sterling Suffolk Racecourse, one of the losing bidders for the Greater Boston casino license a few years back, suing the Las Vegas company and other defendants and claiming that the selection process conducted by MassGaming was marred by cronyism and a number of other improprieties.

According to Sterling Suffolk, Everett Mayor Carlo DeMaria received kickbacks for facilitating the acquisition of the land where Wynn Resorts planned to build its resort, if it won the casino license bidding process. The racecourse seeks $3 billion in damages arguing that it was victim to a compromised land acquisition deal and licensing process.

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