Nevada Regulator to Examine Galaxy After Deal for Wynn Shares

(Bloomberg) -- The Nevada Gaming Control Board will look into Galaxy Entertainment Group after the Hong Kong-based casino company’s purchase of a stake in Wynn Resorts Ltd.

“As is its ordinary course, the Nevada Gaming Control Board engages in a due diligence process for any shareholder approaching a reporting requirement,” Becky Harris, the board’s chairwoman, said Friday in an emailed statement.

Individuals owning more than 10 percent of a casino must meet suitability requirements in the state, while a 5 percent stake triggers reporting rules for the board. Galaxy’s 4.9 percent share falls short, but the state’s chief casino agency has discretion over whether to examine investors with less.

In a surprise move, Wynn Resorts announced Thursday that Galaxy, a rival casino operator in Macau, had acquired 5.3 million shares of the Las Vegas-based company for $927.5 million.

The move marks the latest twist in the Wynn Resorts saga. Founder Steve Wynn stepped down last month over allegations that he sexually harassed employees for decades. Regulators in Nevada, Macau and Massachusetts launched investigations into the company, which remain active. On Thursday, Wynn Resorts announced that Wynn had sold all of his shares in the business.

©2018 Bloomberg L.P.

Bloomberg
Stay Updated With Stock Market News on BloombergQuint