Steve Wynn, the erstwhile Chief Executive Officer of Wynn Resorts, has consented to shell out a whopping $10 million in order to resolve his ongoing issues in the state of Nevada. Furthermore, the tycoon has decided to permanently depart the Nevada gaming scene.
The former CEO found himself embroiled in controversial circumstances within the state of Nevada following allegations of sexual misconduct and abuse involving female associates in 2019, during his tenure as the company’s chairman.
The allegations led the authorities to declare him unfit to own a gaming license within the state jurisdiction. As part of the new settlement deal, Wynn has committed to discontinuing any involvement in the gaming industry of Nevada. This implies that Wynn will abstain from holding any executive or top-officer role at any gaming establishment within Nevada. However, he is not entirely banned from holding a passive stake of less than 5% in any licensed gaming company within the state.
The agreement was formally signed by Wynn on this past Monday. Provided the Nevada Gaming Control Board grants approval to the settlement, it will signify the conclusion of a four-year dispute. The board’s decision is anticipated to be finalized in the coming week.
Until the verdict of the commission is out, representatives from both the parties decided to not make any comments regarding the matter. Despite this, Kirk Hendrick, the chairperson of the Nevada Gaming Control Board, went ahead and signed the settlement.
Wynn’s Alleged Misconduct Resulted in Grave Consequences for His Company
Back in 2018, Steve Wynn had divested his Wynn Resorts stocks and called it quits as CEO, revoking his gambling license in the process. He argued that this sequence of events should put him beyond the jurisdiction of gaming regulations. The allegations notwithstanding, the real-estate businessman has vehemently denied any wrongdoing.
In 2020, a judge’s ruling concurred with Wynn that he should be beyond the jurisdiction of the control board. However, the regulator managed to successfully overturn the ruling in 2022.
Interestingly, although Wynn continues to deny the allegations, he has consented to renounce his right to a public hearing and accepted to pay a $10 million settlement. Even if the Gaming Control Board gives its nod to the settlement, Wynn will continue to be under scrutiny, subject to disciplinary measures, in case he doesn’t adhere to the terms of the agreement.
On a related note, the Nevada regulatory body had previously chastised Wynn Resorts for its failure to take steps to report, investigate, or prevent Wynn’s alleged misdeeds. Consequently, the company was slapped with a hefty fine amounting to $20 million. Moreover, the company was penalized with an additional fine of $35 million in Massachusetts, in response to the allegations.
Post Wynn’s departure, the company has undertaken a series of policy modifications with the intention of eradicating instances of harassment from its corporate environment.
On another front, the US government contested a ruling that cleared Wynn from allegations pertaining to being a foreign agent.
