Steve Wynn, a Las Vegas casino CEO, currently faces a number of sexual misconduct allegations. The allegations at his hotel are a part of a recent reveal by the Wall Street Journal. Steven Wynn talked to the media after the accusations came up and dismissed them as absurd. He claims the accusations are the result of a plan concocted by his former wife. He disputes all accusations, saying his former wife is trying to change the litigation against Mr. Wynn and his Wynn Resorts casino enterprise.
More than a dozen of Wynn employees have since come forward and accused Wynn of creating a hostile workplace environment for women. This comes as the result of numerous interviews the Wall Street Journal took with members of the staff. The report claims a certain number of female employees were the subject of undesirable sexual advances by Mr. Wynn. The report also claims Wynn pressured women to perform sex acts with him.
The report details the accusation brought forth by a former manicurist that worked at Wynn Las Vegas resort. The woman accuses Wynn of forcing himself on her in his office in 2005. To keep the incident from going public, Wynn paid the former employee $7.5 million in a settlement.
Steve Wynn is the CEO, chairman, and founder of Wynn Resorts, one of the biggest companies in the gambling industry. The company has casino resorts in Las Vegas and Macau, and is currently building a resort in the Greater Boston area. Wynn also happens to be a major contributor to the Republican Party. Despite being his rival, President Donald Trump appointed Wynn Finance Chairman of the Republican National Committee. President Trump also called Wynn a friend during his 2016 Presidential campaign.
Comments Following the Allegations
The Republican Party has still to comment on the allegations of sexual misconduct against Wynn. With his future in the party unclear, the allegations could ultimately cost Wynn his role in the National Committee of the GOP.
After the release of the Wall Street Journal report, the Wynn Resorts Board took Wynn’s side. The Board claims the accusations might come from the former wife of Wynn. She is suing Wynn and his company in order to gain a stake in Wynn Resorts. The former wife went to court to argue her ex-husband was the main reason she was removed from the Board of the casino after their divorce in 2010.
Last Friday, members of the Board announced they would arrange for a special investigation with independent investigators. Patricia Mulroy will chair the investigation. She is a member of the Wynn Resorts Board and former member of the Nevada Gaming Commission,
The Board stated recently they are deeply committed to making sure all their employees are safe. However, the accusations against Wynn are only the latest in a series of sexual misconduct allegations. The stories involve men from the entertainment industry and politicians.
MassGaming Opens Investigation Into Wynn
On Friday, the Massachusetts Gaming Commission released a statement announcing they will conduct a review of the allegations against Steve Wynn. The Commission stated on Friday their investigation will focus on this matter to determine their next steps regarding the future of Wynn Resorts in the casino industry in the US.
The Commission issued Wynn Resorts a commercial casino license in 2013 and needs to ensure that all holders of the license uphold the integrity and norms of the Commission. This is connected to the new estate Wynn Resorts is currently building in Massachusetts.
The Fallout against Wynn Widens
Steve Wynn decided to resign from his position as Finance Chairman in the Republican Party as result of the various allegations against him. Ronna Romney-McDaniel, the chairperson for the RNC, confirmed she had accepted Wynn’s resignation. The RNC made the announcement only a day after reports of female employees accusing Wynn of sexual misconduct surfaced in the media. The accusations are dating back decades.
In her statement, McDaniel did not mention any of the allegations against Wynn. However, Wynn released a statement on Saturday claiming the RNC is trying to make America a better place and their work should not be damaged by any distractions.
The recent allegations caused the Wynn Resorts stock to lose 10% of its value. The Wynn Macau stocks also lost some of its value on Monday when the Hong Kong stock exchange opened. This spoiled the company’s momentum that was the direct result of last week’s Q4 and FY17.
The recent allegations have raised concerns that Wynn will ultimately step down as CEO of the company. If Wynn steps down, there is no obvious replacement in line. This is the direct result of a weak board of directors that transferred all power to Wynn.