Wynn Resorts Fined $20 Million in Nevada Over the Actions of Ex-CEO
(Bloomberg) -- Wynn Resorts Ltd. was fined $20 million by Nevada gaming regulators over its failure to investigate and act upon sexual-misconduct allegations by employees against former Chief Executive Officer Steve Wynn.
The fine was proposed by Nevada Gaming Commission Chairman Tony Alamo at a hearing Tuesday and confirmed by a 4-0 vote. Last month, the company reached a settlement with the state, but the amount of the fine wasn’t specified.
While Alamo said the fine will be “record setting,” he didn’t want it to be so high as to irreparably damage Wynn Resorts. Previously, regulators have said they wouldn’t seek to revoke or limit Wynn’s licenses in the state, which is a gambling mecca that includes the Las Vegas Strip.
“This sends a great message in Nevada that this won’t be tolerated," Alamo said at the hearing.
Nevada was one of several jurisdictions investigating Wynn. Regulators from Massachusetts to Macau are probing allegations that surfaced in the Wall Street Journal last year. They included reports that the company co-founder pressured massage therapists to perform sex acts and paid $7.5 million to settle claims that he had forced himself on a manicurist.
Independent directors of Wynn Resorts launched their own investigation. The company -- now run by CEO Matt Maddox -- also added more women to its board and overhauled its policies.
“We are pleased that the Nevada Gaming Commission has recognized the company’s transformation and ‘refreshed culture’ over the course of the last 12 months and acknowledged the ‘paradigm shift’ that has occurred within the company," Wynn Resorts said in a statement.
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