People have been associating Wynn and Steve Wynn as the same entity for years. They equated the man with the casino and vice versa.
A Wall Street Journal story (paywall) containing severe allegations of sexual harassment against the casino magnate resulted in a significant change.
The story emerged on January 27. Initially, Wynn maintained his innocence, arguing that the allegations were untrue. Yet, as more details came to light, he stepped down from his position as CEO of Wynn Resorts on February 6. Furthermore, Wynn relinquished his title at Wynn Macau and also withdrew from his role as finance chair of the Republican National Committee.
Wynn Resorts will have Mark Maddux as their new CEO.
With the departure of the man who was integral in defining the brand, numerous questions about the future of Wynn Resorts have arisen. Some of these questions are relatively minor, such as whether its planned Las Vegas expansion will proceed.
Others have far more severe consequences, specifically the possibility that the company could lose its gaming license in both Nevada and Massachusetts.
Wynn’s future seemed bright
The allegations against Wynn were made just days following an earnings call filled with positive news for the company. The company’s Asian casinos keep generating substantial revenue, to the extent that the company purchased an extra piece of land on the Las Vegas Strip for a second new venture, Wynn West.
Looking back, it seems probable that these announcements were made already aware that the WSJ story was on the horizon. Despite being bolstered by positive news, the company’s stock still plunged, dropping from a peak of $200.6 to a trough of $163.5.
Calls for Wynn’s resignation flooded in as the stock plummeted. The value of the stock was not the only thing at risk. Gaming Control Boards in both Nevada and Massachusetts declared their intention to investigate the company’s eligibility to retain its gaming license. Wynn is presently in charge of two casinos in Nevada and is developing a billion-dollar property in Boston, MA.
Does resignation keep the casinos in the clear?
Although Wynn is no longer a board member of the casino company, the issue remains unresolved. Both gaming commissions plan to persist in their investigation into the alleged incidents.
Becky Harris, the new Chairwoman of the NGCB, conducted her initial meeting in the role without mentioning Wynn’s name. But, she assured the Las Vegas Review-Journal after the meeting that the investigation would proceed despite Wynn’s resignation.
The Review-Journal’s story also mentioned that Massachusetts gaming officials intended to proceed with their investigation.
Besides probing the harassment allegations, the groups are also scrutinizing a dubious $7.5 million settlement payment that Mr. Wynn made to a woman. They are particularly investigating the possibility of Wynn using a shell company to conceal the payment.
Despite Wynn’s resignation, the Nevada properties remain vulnerable to fines and citations.
Could someone buy up Wynn?
One might argue that, since the visionary Wynn is no longer involved, it’s time for another company to take over. However, according to Jim Murren, CEO of MGM Resorts, that assumption would be wrong.
In an interview from Tokyo on Friday, Murren discussed his company’s activities in Asia. On being questioned about a potential megadeal acquisition of the Wynn brand, he expressed skepticism.
“He explained that it’s a substantial organization. It’s hard to believe that any entity would have the financial capacity to make a substantial bid for them,”
Image sourced from Shutterstock.com, captured by Michael Gordon.
