Wynn Resorts has been fined $20m by the Nevada Gaming Control Board, relating to a failure to investigate allegations of sexual harassment levelled against former founder, chairman and CEO Steve Wynn.
Announcing last month that a settlement had been reached with the regulator, it followed admittance of the part played by former executives “who was aware of allegations of sexual assault against the company’s former chairman, and did not investigate or report it”.
Labelled full and final by both parties, Wynn, who will keep its gambling licence, sees the fine handed down become the largest in state history, amounting to a penalty almost four times higher than the $5.5m levelled against Cantor Gaming, now CG Technology, in 2014.
Quoted in the Boston Herald, the NGCB’s chairman Tony Alamo is quoted as saying: “The fine needs to move the needle, it needs to ring across the entire country, outside of our borders.”
Added to by commissioner John Moran, who stated: “The people that caused this aren’t here, the people in this room are left with the train wreck.”
Fellow commissioner Philip Pro went a little further, explained that the complaint highlights “a real failure — it’s not about one man — it’s about a failure of a corporate culture to effectively govern itself as it should in a responsible manner.
“We have a responsibility to send a message so that every licensee that has that privilege license — it’s not a right — understands that if they either engage in or encountered … the kinds of things that are sent out in this complaint that there will be zero tolerance… that the penalties will be severe.”
In its own response to the NGCB’s final resolution, the Las Vegas headquartered casino resort owner and operator issued its own statement: “This brings to a conclusion the Nevada gaming regulators review of who in the company was aware of allegations against the company’s founder and former CEO.
“We are pleased that the Nevada Gaming Commission has recognised the company’s transformation, and ‘refreshed culture’ over the course of the last twelve months, and acknowledged the ‘paradigm shift’ that has occurred within the company.
“The completion of the review by Nevada regulators is an important step forward, and we deeply appreciate the trust and confidence they have placed in the new leadership of Wynn Resorts to ‘grow and prosper.'”