Steve Wynn settles sexual misconduct investigation for $10 million to end the affair.
Steve Wynn settles sexual misconduct investigation for $10 million to end the affair.
Las Vegas Casino Mogul, Steve Wynn, Settles Sexual Misconduct Allegations with Record Fine
In a landmark decision, the Nevada Gaming Commission has accepted a settlement regarding the allegations that led to the resignation of Las Vegas casino mogul, Steve Wynn, from his corporate empire in February 2018. The settlement, which comes with a record-breaking fine, marks the end of the state’s investigation into the sexual misconduct claims made against Wynn. While Wynn admitted no wrongdoing, the Nevada Gaming Control Board’s seven-month investigation concluded that there was evidence of sexual misconduct by Wynn involving some of his subordinate female employees.
The decision by the commission was unanimous, with Commission Chairwoman Jennifer Togliatti abstaining from voting due to a conflict arising from her previous work as a state court mediator. Wynn, who is now 81 and resides in Florida, did not attend the hearing, which was livestreamed on the internet. His attorney, Colby Williams, called the case the final regulatory matter that Wynn faced stemming from the allegations five years ago.
The fine imposed by the commission is the largest ever, second only to the $20 million paid in February 2019 by Wynn’s former company, Wynn Resorts Ltd., for failing to investigate the sexual misconduct claims made against Wynn. The significance of this fine highlights the seriousness of the allegations and their impact on the casino industry. Commissioner Rosa Solis-Rainey stated, “While Mr. Wynn made some incredible contributions, the nature of the allegations that were made and the history behind that… warrant at least the amount of fines that were negotiated.”
Forbes ranks Wynn’s net worth at $3.2 billion, placing him among the top 400 wealthiest Americans. Despite the financial setback, Wynn is ready to move on to the next chapter in his life, according to his attorney. However, it is worth noting that violating the settlement agreement could lead to further unsuitability for association with Nevada casinos and additional fines.
Steve Wynn has had a tremendous impact on the casino industry, playing a crucial role in transforming Las Vegas Strip properties from gambling halls with all-you-can-eat buffets and showrooms into the extravagant and opulent destination resorts we know today. Some of his notable developments include the Golden Nugget, Mirage, Treasure Island, Bellagio, Wynn, and Encore in Las Vegas, as well as properties in Atlantic City, New Jersey; Biloxi, Mississippi; Macau, China; and Boston Harbor, Massachusetts.
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Wynn’s resignation came after the Wall Street Journal published allegations by several women accusing him of sexual harassment or assault at his hotels. This prompted him to divest company shares, resign from the corporate board, and step down as the finance chairman of the Republican National Committee. While he has consistently denied these allegations in multiple courts, the Nevada Supreme Court ruled against him in March 2022, stating that a state judge in Las Vegas acted prematurely by siding with Wynn’s lawyers and concluding that the state lacked authority to punish him.
The investigation by state regulators was launched following the emergence of the allegations against Wynn. The board placed Wynn’s license on administrative hold, and the commission took steps in October 2019 to discipline or fine him. At a December 2019 hearing, commissioners began considering a fine of up to $500,000 and a declaration of unsuitability for Wynn to renew ties with gambling in Nevada. The commission previously fined Wynn’s former company, Wynn Resorts Ltd., a record-breaking $20 million. Additionally, Massachusetts gambling regulators fined Wynn Resorts Ltd. another $35 million, and the new company CEO, Matthew Maddox, $500,000 for failing to disclose sexual misconduct allegations while applying for a license for the Boston-area resort.
As part of the settlement, Wynn Resorts agreed to accept $20 million in damages from Wynn and $21 million more from insurance carriers on behalf of current and former employees of Wynn Resorts to settle shareholder lawsuits accusing company directors of failing to disclose misconduct allegations. It is important to note that these settlements included no admission of wrongdoing.
In conclusion, the settlement reached between Steve Wynn and the Nevada Gaming Commission brings an end to a tumultuous chapter in the casino industry. Despite his significant contributions, the allegations of sexual misconduct have left a stain on Wynn’s legacy. The record fine serves as a stark reminder that no individual is above the law, regardless of their stature or accomplishments. As the industry looks to move forward, it is crucial to ensure that all individuals, especially those in positions of power, are held accountable for their actions to create a safer and more inclusive environment within the gaming community.
