Wynn Resorts fined $20M over sex allegations
LAS VEGAS — Casino mogul Steve Wynn’s former company was fined a record $20 million by Nevada gambling regulators for failing to investigate claims of sexual misconduct made against him before he resigned a year ago.
The penalty against Wynn Resorts Ltd. ends an investigation that began after The Wall Street Journal reported that several women said the company founder harassed or assaulted them.
Wynn Resorts will keep its gambling license under the Nevada Gaming Commission settlement approved by four commissioners who set the fine.
“It’s not about one man,” said Commissioner Philip Pro, a former federal court judge. “It’s about a failure of a corporate culture to effectively govern itself as it should.”
Pro called the commission “guardians of the integrity of gambling,” with a responsibility to make sure license holders “don’t do things that bring disrepute on the industry” in Nevada.
The previous highest fine in state history was $5.5 million in 2014 against the sports betting and mobile gambling system company now known as CG Technology.
Commissioners John Moran Jr. and Deborah Fuetsch said they considered a higher fine, but did not specify an amount.
Chairman Tony Alamo said $20 million “makes it clear to all licensees that this culture cannot be tolerated,” while also letting the publicly traded company “heal.”
“It needs to move needles here,” he said. “It needs to ring across the entire country.”
Steve Wynn himself was not part of the settlement, and neither Wynn nor any personal representatives attended the commission hearing. Wynn has denied all allegations against him. One of his attorneys, Colby Williams, said by telephone that he was aware of the fine but declined to comment.
The commission has frozen Wynn’s Nevada casino license. It has not taken other disciplinary action against him or the other board members and executives named in the settlement. None are still with the company.
Wynn resigned as board chairman and company CEO in February 2018 following reports that he harassed or assaulted several women. He also sold his company shares.
Details about the investigation and its findings were not made public.
But Wynn Resorts acknowledged in settlement documents that several former board members and executives knew about but failed to investigate after Wynn paid $7.5 million in 2005 to a former salon employee who alleged he raped her and that she became pregnant as a result.
“Mr. Wynn engaged in intimate and sexual conduct with (company) employees,” the settlement documents said.
The company also failed to investigate a cocktail server’s allegation that from 2005 to 2006 Wynn pressured her into a nonconsensual sexual relationship, the documents said. Wynn paid a $975,000 private settlement to that woman and her parents, the settlement said.
Wynn Resorts neither admitted nor denied that company executives were made aware of allegations that Wynn sexually harassed multiple flight attendants on company aircraft.
“The company’s initial response during this period was driven by Mr. Wynn’s adamant denial of all allegations,” said a statement from Wynn Resorts spokesman Michael Weaver.
It acknowledged a “shortsighted focus on initially defending Mr. Wynn, rather than reassuring employees of the company’s commitment to a safe and respectful work environment.”