Nevada Gaming Commission Fines Wynn Resort $20 million
Failed Wynn Resort Top Management
When the Nevada Gambling Commissions we announcing the fine amount on Tuesday, they said that the case is not about one man but a corporate culture failure to govern itself. During the investigation, Wynn Resort acknowledged that the board members neglected to investigate about eight sexual allegations that they knew of against the CEO. They also revealed the members were aware of the payment made to the manicurist in 2005 of $7 million.
After the Wall Street Journal published the report about the CEO’s sexual misconducts, changes were made to management. Matt Maddox replaced Steve Wynn as the new CEO. They also hired Phil Satre at the Chairman and firing General Counsel Kim Sinatra who was believed to have covered some of the sexual misconducts.
The handing of this settlement will now give Wynn Resort the chance to focus their attention to the Massachusetts integrated resort. They are building the $2.6 billion resort to be named encore Boston Harbour. However, the Massachusetts Gaming Commission is currently evaluating the suitability of Wynn Resort to operate the casino complex.
The Commission voted on settling the legal dispute they have with Steve Wynn so that they can be able to decide on whether the Resort is suitable to run the Boston harbour property.