Nevada gambling board after Wynn

Casino mogul Steve Wynn is under investigation after sexual misconduct allegations were leveled against him, Nevada gambling regulators announced yesterday [Macau time].

The Wall Street Journal reported Friday that a number of women said they were harassed or assaulted by Wynn, and that one case led to a USD7.5 million settlement with a manicurist.

Wynn has vehemently denied the allegations, which he attributed to a campaign led by his ex-wife.

The state Gaming Control Board said in a statement that it opened the investigation after completing a review, but it did not provide any further details. Its chairwoman, Becky Harris, declined to answer questions from The Associated Press seeking additional information.

“The Nevada Gaming Control Board will conduct its investigation in a thorough and judicious manner,” according to the statement from the three-member panel.

State gambling regulations provide grounds for disciplinary action if any activity from the licensed operator, its agents or employees is deemed “inimical to the public health, safety, morals, good order and general welfare” of Nevada residents or discrediting of the state and its gambling industry.

Regulators could potentially levy fines against the company, place conditions on its license or even revoke it.

At the same time, the board of directors of Wynn Resorts has said a committee of independent directors would investigate the allegations. It will be headed by Patricia Mulroy, a Wynn Resorts board member and a former member of the Nevada Gaming Commission.

Nevada Gov. Brian Sandoval, who appoints the members of the board, on Tuesday told The Associated Press he was “disturbed, saddened and deeply troubled” by the allegations.

“There is no place and there should be zero tolerance for sexual harassment in the workplace,” he said. “As governor, I will continue to work to ensure that all Nevadans work in a safe and respectful environment. Anything less is unacceptable.”

Since 2013, Wynn has contributed nearly $2.4 million to GOP candidates and party organizations around the country, including Sandoval and 2017 special election winners. Some Republicans in Congress, including Nevada’s Dean Heller, have already announced they are donating contributions they received from Wynn to charity.

Wynn resigned Saturday [Sunday, Macau time] as finance chairman of the Republican National Committee.

The union representing more than 50,000 casino workers in Las Vegas, including 5,500 housekeepers, cooks, bartenders and food and cocktail servers at Wynn’s two casino-hotels, plans to strengthen the language against sexual harassment in contracts when it begins negotiations next month with the majority of operators, but not Wynn Resorts. The contracts of the company’s unionized workers are not up for negotiations yet.

“We are deeply disturbed by these accusations against Steve Wynn and support a full and fair investigation regarding these allegations,” Geoconda Argüello-Kline, the Culinary Union secretary-treasurer, said in a statement. The organization will also ask “panic buttons” for every housekeeper.

Gambling regulators in Massachusetts are also looking into the allegations.

In addition, the China arm of Wynn’s casino empire has said it will comply with Macau regulators as they seek more information. Macau is the world’s most lucrative casino market and the main source of profits for Wynn and other foreign gambling companies. MDT/AP

The story so far

Friday, January 26  (US time) – Interviewing more than 150 employees and former employees of Wynn Resorts, the Wall Street Journal finds and reports a pattern of alleged sexual misconduct by company helmsman Steve Wynn. Among several allegations of sexual harassment and coercion, Wynn is said to have paid a manicurist to have sex with him and then paid out USD7.5 million at a later date to settle a harassment claim. Wynn denies the allegations, calling them “preposterous”.

Friday, January 26 (US time) – In Friday trading on the New York Stock Exchange, shares of Wynn Resorts plummeted 10 percent in response to the allegations, marking the biggest move in 13 months.

Saturday,  January 27 (US time) – Steve Wynn steps down as Republican National Committee finance chair with the explanation, “the work we are doing to make America a better place is too important to be impaired by this distraction.”

Sunday, January 28 (US time) – After the board of Wynn Resorts announces it will launch an investigation into claims of sexual harassment, several gaming regulators in the United States say they will follow suit. Among them are the Nevada Gaming Control Board and the Massachusetts Gaming Commission, the entity responsible for the jurisdiction where a new Wynn casino is under construction.

Monday, January 29 (Macau time) – Shares of Wynn Resorts’ subsidiary, Wynn Macau, slump 6.5 percent in Hong Kong trading, with several stock analysts downgrading their rating. Some analysts worry that the scandal will affect the subsidiary’s bid for a license renewal in the upcoming negotiations.

Monday , January 29 (US time) – Several Republican senators band together calling for the party to return donations made by Steve Wynn, should he found guilty of the sexual harassment charges.

Tuesday, January 30 (US time) – Wynn Resorts continues to deny the allegations and says Steve Wynn’s former wife, Elaine, was behind the Wall Street Journal scoop. Elaine Wynn is battling her former husband over a disputed 9 percent stake in Wynn Resorts. In a statement, the company says that “sufficient evidence exists to show that Elaine Wynn, personally and/or through her agents, instigated and facilitated the Wall Street Journal article.”

Tuesday,  January 30 (Macau time) – The Macau Gaming Inspection and Coordination Bureau voices concerns over the scandal, prompting Wynn Macau to promise it will cooperate with any requests from local regulators.

Tuesday,  January 30 (US time) –

The Nevada Gaming Control Board launches a formal investigation into the allegations. The body has the authority to force Wynn out of the industry over the allegations of sexual harassment. DB