Wynn says he’s out, but officials say otherwise

JUST because Steve Wynn has stepped down from his leadership positions at Wynn Resorts Ltd., has sold all of the shares he owned in the company and settled legal differences with his ex-wife, Elaine, don’t think for a minute that gaming regulators are through with him.

Judging from the tone of statements made by his representatives earlier this month, Steve Wynn believes his actions have cleared him of regulatory scrutiny.

A letter Wynn’s attorney wrote to the Massachusetts Gaming Commission essentially says, “I’m out, so quit bothering me.”

But the response from Massachusetts, in essence, says, “You’re out when we say you’re out.”

The March 27 letter from attorney Brian Kelly said, “As Mr. Wynn is no longer a qualifier of any commission licensee, there is no longer any regulatory or statutory justification to continue the commission’s inquiry into Mr. Wynn’s suitability as a qualifier of the commission. The commission no longer has jurisdiction over Mr. Wynn — he is a private Nevada citizen unaffiliated with Wynn Resorts LLC or any commission licensee.”

Kelly told commissioners that Wynn no longer would respond to any of the commission’s requests for information in connection with a suitability investigation.

When the commission took up the question of Wynn’s current status with Massachusetts, Executive Director Ed Bedrosian spelled out how the state’s regulators are going to proceed. Regulators will schedule a hearing in May to consider the question of whether Wynn is truly out, but they won’t delve into other issues critical to the company’s continued presence in Massachusetts.

“The commission’s decision will be limited to the question of whether or not Steve Wynn is still a qualifier,” Bedrosian told commissioners. “The commission will not consider or make a decision on Steve Wynn’s continued suitability.”

Bedrosian also said the commission’s decision at the hearing will not put an end

to the current investigation by the Investigation Enforcement Bureau into allegations of sexual harassment and misconduct against Wynn or the handling of those allegations by the Wynn Resorts’ board of directors.

Current Wynn CEO Matt Maddox has done just about everything he can to sever all connections with the company’s founder and namesake. That’s why company officials were happy that Steve and Elaine Wynn settled their breach-of-contract lawsuit last week. No one wanted the unpredictability of what could

emerge in open court.

Steve Wynn’s representatives also expressed relief that the settlement means finality to the case.

“Mr. Wynn expressed gratification that he was able to put all of the personal unpleasantness of the last few years between he and Ms. Wynn behind him,” an email from his camp said.

But is it really behind him? When Massachusetts conducts its hearing in May, it will be interesting to see if Steve Wynn is represented, considering the company still has a huge investment in Boston. Despite all of the Wynn Boston Harbor sale rumors, the company is still important to the state regardless of whose name is on the building.

And then, there’s the matter of potentially disciplining the company for the embarrassment it caused for the state and the industry.

In Nevada, where an investigation is continuing, regulators could consider a Regulation 5 complaint that Wynn’s recent actions “would reflect or tend to reflect discredit upon the State of Nevada or the gaming industry.”

No, Steve Wynn and the company aren’t out of the woods yet.