Changing of guard at Wynn Resorts
Elaine Wynn officially withdraws from board
It’s the end of an era for Wynn Resorts Ltd.
Company co-founder Elaine Wynn was required to withdraw a request for a gaming license as a company board director. She’s no longer eligible to serve on the board of directors because of company age policies.
But as the company’s largest shareholder with 8.84 percent of the company’s stock, she won unanimous approval as a beneficial owner of company shares Thursday by the Nevada Gaming Commission.
Wynn, co-founder of the company and current president of the Nevada State Board of Education, was required to appear before the commission because of a previous request to withdraw for licensing as a board director.
Las Vegas-based gaming analyst Brendan Bussmann called Thursday’s action “a changing of the guard.”
“This is sort of closing a chapter over the course of time with both Steve (Wynn) and Elaine’s direct influence on the gaming industry,” said Bussmann of Global Market Advisors. “With regard to Elaine, her philanthropic efforts and other passions are still going to be a key mark on this state in the years to come.”
Regulators acknowledged Elaine Wynn’s ability to profit from the company with her shares, but there are no Wynns in the management of the company since Steve Wynn resigned in February 2018 and divested his shares a month later.
A five-count sexual harassment complaint filed by the Control Board against Steve Wynn on Oct. 14, 2019, is still pending. In December, commissioners unanimously determined they have the jurisdiction to question
The state’s Gaming Control Board conducted an investigation and ultimately filed a five-count complaint in October 2019, alleging Wynn had violated state regulations by engaging in sexual conduct with employees and claiming his actions “harmed Nevada’s reputation and its gaming industry.”
The board sought to revoke
Wynn’s findings of suitability, which would effectively take away Wynn’s license and would have likely banned him from being licensed within the state again, an unprecedented move. The complaint also encouraged Wynn to be fined.
In January, Wynn filed a petition that claimed state regulators did not have authority over him because he was no longer involved with Wynn Resorts.
Regulators maintained that the Nevada Legislature had granted them broad powers to enforce state gaming laws — including the ability to punish those who violate state regulations. Otherwise, they said violators would have the ability to quit to avoid fines or penalties, only to return to the industry later on.
But Clark County District Court Judge Adriana Escobar’s ruling found gaming regulators do not have the ability to punish Wynn after his departure from the company.
“Because (Wynn) has no material involvement, directly or indirectly, with a licensed gaming operation, this Court finds that Respondents have no jurisdiction to impose discipline or fines against” him, Escobar’s ruling said.
Sandra Morgan, the former control board Chairwoman and one of three regulators who signed the complaint, declined to comment on Wynn’s case due to her involvement, but said she believes the board has the jurisdiction to seek discipline against licensees and individuals over actions that took place while they were involved with gaming operations.
Wynn’s attorneys declined to comment.