The Nevada Gaming Commission has imposed a record $20 million fine on Wynn Resorts. The international casino operator was penalised heavily for its consistent failure to probe allegations of sexual misconduct against its former CEO, Steve Wynn.
Following a shocking report from the Wall Street Journal, which alleged numerous cases of sexual misconduct, Steve Wynn resigned from his position as CEO of the casino company he founded. This decision concludes a year-long investigation into these allegations.
Steve Wynn, despite being the cause of the $20 million fine, was not personally involved in the investigation and settlement. The Nevada Gaming Control Board has not clarified 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, acknowledging the recognition of the company’s transformation and ‘refreshed culture’ by the Nevada Gaming Commission over the past year. They also noted the acknowledgement of the ‘paradigm shift’ that occurred within the company.
Wynn Resorts is moving forward
The statement further read, “The completion of the review by Nevada regulators marks a significant progress, and we are profoundly grateful for the faith and confidence that they have vested in Wynn Resorts’ new leadership to ‘grow and prosper.'”
As part of the settlement with the Nevada Gaming Commission, Wynn Resorts will retain its Nevada gaming license.
In the last year, Wynn Resorts has distanced itself from the previous administration that failed to report allegations against Mr. Wynn. The company now has a new CEO and nine new board members, four of whom are women. Notably, none of the current executives are personally subject to any fines.
Wynn Las Vegas hasn’t seen much of a negative impact
Despite the allegations, guests continue to enjoy the traditional high-quality experience at Wynn Las Vegas and Encore, with no noticeable decline in service. The casino-resort remains operational as usual. Following a short-lived slowdown in the wake of the allegations, customers resumed patronizing Wynn Las Vegas, unaffected by the incident.
The annual earnings report from Wynn Resorts revealed that Wynn Las Vegas’ occupancy rate rose from 86.9% in 2017 to 87.5% in 2018. This increase, attributed to continued high demand, also caused room rates to climb from $303 in 2017 to $314 in 2018. Additionally, a slight increase was noted in gaming revenue from the Wynn and Encore casinos.
The Wynn Plaza retail mall launched in November following a brief postponement. Matt Maddox, the current CEO, declared late last year that Wynn Resorts would be decelerating its additional expansion plans in Las Vegas. The upcoming convention center and refurbished golf course remain on track to open in early 2020, while all other projects have been put on hold.
The 38-acre property they possess on the other side of Las Vegas Boulevard will stay undeveloped for a few years. They will need a span of two years to devise a strategy for the new land. Unless a decision to sell the land is made, there will be no news about a new venture until 2021.
The prevailing idea is that the new hotel-casino will differ from the existing Wynn and Encore towers. The intention is for the new establishment to provide more than just additional slots, eateries, and shopping options.
