Nevada Fines Wynn Resorts $20 Million to Settle Sexual Harassment Scandal

Wynn Resorts faces a record $20 million fine after admitting to have covered up multiple sexual harassment incidents involving its former boss

The Nevada Gaming Control Board slapped yesterday a record $20-million fine on casino giant Wynn Resorts for its part in the sexual harassment scandal its founder and former CEO, Steve Wynn, was embroiled in last year.

The Nevada gambling regulator issued its fine after it entered into a settlement with the gaming and hospitality company earlier this month. Back then, the board informed Wynn Resorts that it would announce its decision on the size of the fine the casino operator would be imposed at a later date.

The gaming and hospitality giant admitted its participation in covering up multiple settlements with employees who claimed that they were sexually harassed by Mr. Wynn. The Nevada Gaming Control Board also found out during a probe on the matter that members of the company’s management team “facilitated sexual relationships” between the company’s founder and employees at its Wynn Resorts’ properties.

The Wall Street Journal published last January a shocking report detailing a decades-long sexual misconduct pattern by Mr. Wynn and multiple private settlements between the businessman and company employees. One of the sexual harassment incidents involved a former manicurist being paid $7.5 million in order to keep quiet about being subjected to unwanted sexual advances by Mr. Wynn.

Management Overhaul

Mr. Wynn resigned from his CEO role in the company he found shortly after the publication of the WSJ report. He also sold his stock in Wynn Resorts and vacated his private villa at Wynn Las Vegas.

The businessman was replaced by Matt Maddox as CEO of the gaming and hospitality giant. Wynn Resorts also appointed gambling industry veteran Phil Satre as its Chairman. The company conducted a massive managerial overhaul in the months after the publication of WSJ’s shocking revealings, firing a number of top executives, including former General Counsel Kim Sinatra, who were believed to have covered up the multiple alleged sexual harassment incidents involving Mr. Wynn.

The Nevada Gaming Control Board said during a hearing held yesterday that the hefty fine, four-times larger than any other ever imposed by the regulator, was slapped on Wynn Resorts for failing its employees and for failing the state.

The settlement with Nevada regulators will enable Wynn Resorts to focus its full attention on addressing its troubles in Massachusetts where it is building the $2.6 billion Encore Boston Harbor integrated resort.

The Massachusetts Gaming Commission is currently assessing the company’s suitability to operate the luxury hotel and casino complex. It was expected to publish a report based on the findings of a lengthy probe into the sexual harassment allegations leveled against Mr. Wynn last December.

However, the businessman sued the gaming regulator and the company in a Nevada court, arguing that Wynn Resorts communicated improperly information about him to MassGaming. The presiding judge temporarily blocked the publication of the regulator’s report until she made a decision whether it indeed violated Mr. Wynn’s rights, as he claimed in his complaint.

The Massachusetts Gaming Commission voted last week to settle the legal dispute with the embattled former casino boss in order to avoid protracted litigation that would prevent it from weighing on whether Wynn Resorts is suitable to operate Encore Boston Harbor before the property’s planned late June opening.

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