Steve Wynn Is In The Crosshairs Despite Having Left Wynn Resorts

Article by : Helen Dec 9, 2020

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Updated: Apr 6, 2023

While most land-based gambling venues suffer from the still-ongoing pandemic, Wynn Resorts gets into the spotlight due to the sexual misconduct scandal with the company’s founder Steve Wynn being a potential suspect. In winter 2020, 9 anonymous women filed a lawsuit against Wynn, claiming that they were sexually harassed by him. Despite the women’s allegations that the company’s leaders were hiding the evidence of Wynn’s involvement, a federal judge dismissed the case this summer.

Seemingly the scandal is over, and the company’s reputation is no longer in danger, but Steve Wynn fell fast after the scandal spread. “An avalanche of negative publicity” left no choice for Wynn, and he was ousted from Wynn Resorts as a result. He continued owning a 12% share of the company he founded and living in the Wynn Resorts hotel for some time after his resignation. Anyway, the story still does not end here.

Despite having resigned as CEO of Wynn Resorts, Steve Wynn was still in the crosshair since the Nevada Gaming Control Board (NGCB) wanted to place a lifetime ban on the former CEO. This case was filed to the court but was almost immediately dismissed. Clark County District Court Judge Adriana Escobar stated that the NGCB, along with the Nevada Gaming Commission (NGC), didn’t have any legal grounds for going after Wynn. It hasn’t stopped the NGCB, as it is likely to appeal the court’s decision, hoping to keep Steve Wynn away from the gambling industry.

The gaming regulator stated that Steve Wynn can by no means be associated with the gambling industry at all. However, the judge decided that the NGCB didn’t have such authority level to place the lifetime ban on Wynn after he had left the company.

Because [Wynn] has no material involvement, directly or indirectly, with a licensed gaming operation, this Court finds that gaming regulators have no jurisdiction to impose discipline or fines against Wynn.

Despite sticking to the statements of innocence and denying any involvement with the sexual misconduct scandals, Wynn decided not to spoil the company’s reputation and resigned. After his resignation, he sold off his company’, which gave him enough money resources to buy a $43-million mansion in Lantana, Florida.

Besides placing the lifetime ban on Wynn’s involvement in the gambling industry, the NGCB wanted to impose a financial penalty on Wynn and hold him accountable for several different violations that occurred during Wynn’s chairmanship. While Wynn was claiming that he had nothing to do with the scandals, it was proven that Wynn Resorts and its executives particularly were involved in some shady action aimed at keeping Steve Wynn out of the sexual misconduct scandals. More than that, the company paid fines totaling more than US$55 million in Nevada and Massachusetts. Anyway, considering that Wynn is no longer leading the company, Adriana Escobar thinks that Wynn cannot be responsible for the violations that happened in the past.

The NGCB is not satisfied with this decision, so during the next regulator’s meeting that is scheduled for December 2, it will decide whether to appeal it or not. In case most regulatory bodies decide to continue fighting with Wynn’s presence in the gambling industry, the NGCB can appeal the decision to the Nevada Supreme Court. Anyway, filing the appeal does not guarantee that the Supreme Court will review the case. According to the official statistics, the Nevada Supreme Court received more than 2,500 petitions in 2019 but reviewed only several dozens of them.