The Nevada Gaming Commission imposed a record $20 million fine on Wynn Resorts. This hefty penalty was given to the global casino operator as a settlement for its consistent failure to look into allegations of sexual misconduct against its former CEO, Steve Wynn.
After a shocking report from the Wall Street Journal alleged numerous instances of sexual misconduct, Steve Wynn resigned from his position as CEO of the casino company he established. This settlement marks the conclusion of a year-long investigation into these allegations.
Steve Wynn, despite being the cause for the $20 million fine, was not personally involved in this investigation and settlement. It is still unclear from the Nevada Gaming Control Board whether Wynn is under individual investigation. His gaming license is currently on hold, preventing him from conducting business in the near future.
Wynn Resorts expressed satisfaction in a statement, stating that the Nevada Gaming Commission had acknowledged the company’s transformation and ‘refreshed culture’ over the past year. The company also highlighted the Commission’s recognition of the ‘paradigm shift’ that has taken place within the organization.
Wynn Resorts is moving forward
The statement went on to say, “The conclusion of the review by Nevada regulators is a significant advancement, and we are profoundly grateful for the faith and assurance they have bestowed upon Wynn Resorts’ new leadership to ‘flourish and thrive.'”
As part of the settlement with the Nevada Gaming Commission, Wynn Resorts will retain its Nevada gaming license.
Wynn Resorts has overhauled its old leadership over the past year, which had failed to report allegations against Mr. Wynn. The company now has nine new board members and a new CEO. Among the new board members, four are women. No current executive will be personally fined.
Wynn Las Vegas hasn’t seen much of a negative impact
Despite the allegations, Wynn Las Vegas and Encore have maintained their traditional high-quality experience, showing no signs of decline. The casino-resort’s business has continued as usual. Although there was a minor slowdown post-allegations, patrons have since returned to Wynn Las Vegas as if nothing transpired.
Wynn Resorts’ annual earnings report reveals that Wynn Las Vegas’ occupancy rose from 86.9 percent in 2017 to 87.5 percent in 2018. This continued high demand led to an increase in room rates from $303 in 2017 to $314 in 2018. Additionally, there was a slight increase in gaming revenue in the Wynn and Encore casinos.
After a brief postponement, the Wynn Plaza retail mall opened its doors in November. Wynn Resorts’ current CEO, Matt Maddox, revealed late last year that the company will be postponing additional expansion plans in Las Vegas. However, the new convention center and renovated golf course are still set to launch at the beginning of 2020. All other projects are currently on pause.
The 38-acre property they possess on the other side of Las Vegas Boulevard will stay undeveloped for a few years. It is anticipated that it will take them two years to devise a plan for the new land. Unless a decision to sell the land is made, there likely won’t be any news about a new project until 2021.
The prevailing notion is that the new hotel-casino will not be identical to the existing Wynn and Encore towers. The aim is for the new establishment to provide more than just additional slots, eateries, and shopping opportunities.
