A top financial ratings agency has downgraded its outlook for Wynn Resorts following bombshell accusations of sexual harassment against gambling mogul Steve Wynn, The Boston Herald reported.
The move underscores the importance of its casino in Everett — now under construction — to Wynn Resorts as the Massachusetts Gaming Commission is set to begin its review of the allegations.
“The recent misconduct allegations against Wynn Resorts’ founder and CEO, which the company’s board of directors and at least one gaming regulator are investigating, could impair the company’s brand and ability to maintain or renew its gaming licenses,” S&P Global Ratings wrote in a research note. “The negative outlook reflects the significant uncertainty surrounding the resolution of various investigations into the misconduct allegations.”
According to the Herald, S&P said the investigation by the Massachusetts Gaming Commission and Wynn Resorts’ own internal investigation could mean trouble for the company. S&P also said the lack of a clear succession plan would be problematic.
“The negative outlook also reflects our limited transparency into potential succession plans in the event that Steve Wynn is forced to resign,” the report, cited by The Boston Herald,
Massachusetts gambling regulators are holding a special meeting to discuss sexual misconduct allegations against casino magnate Steve Wynn, whose company is building the USD2.4 billion casino in Everett outside Boston.
The Massachusetts Gaming Commission will receive an update on an investigation today [Macau time].
Republican Gov. Charlie Baker says if the allegations are true, Wynn would “fail to meet the suitability standard under the state gaming law.”
Under the 2011 casino law, a license is considered a “revocable privilege,” and can be suspended or revoked if a licensee is found “unsuitable to operate a gaming establishment.”
Steve Wynn’s reputation “will likely not recover if sexual harassment allegations check out,” said veteran Las Vegas reporter Jon Ralston in an interview with CNBC over the weekend.
“There is no bigger name in the casino business than Steve Wynn,” said Ralston, who has been covering business and politics in Nevada for 30 years and has interviewed Wynn himself multiple times over the years.
“His name is synonymous, not just because that casino says ‘Wynn’ on top of it,” Ralston told CNBC on “Fast Money.” “Steve Wynn is the biggest name in the history of Nevada gaming.”
“He is the man behind that [empire] and it’s hard to believe that it would not take a hit if something happens to him,” Ralston said. MDT
No Comments