Casino mogul Steve Wynn resigns over sexual harassment claims

08 February, 2018, 00:16 | Author: Salvatore Jensen
  • Wynn Resorts CEO resigns amidst sexual abuse allegations

Steve Wynn now faces investigations by gambling regulators in Nevada and MA, where the company is building an about US$2.4 billion casino just outside Boston.

In a statement, the company's board said it had accepted Wynn's resignation "reluctantly".

Wynn, known for building luxury resorts, and the surging profits from its Macau business make the company a lucrative takeover target for real-estate focused companies and Chinese investors, analysts said.

While he'll no longer run the company, Wynn remains in control of about 21 percent of Wynn Resorts through his own holdings and the stake held by Elaine Wynn.

The Las Vegas-based company in a statement said Wynn's resignation was effective immediately.

Trading on shares of Wynn Macau was halted in Hong Kong early Wednesday in response to the announcement.

Wynn continues to deny the allegations, but said in a statement that he is stepping down from his company because of the "avalanche of negative publicity". The board has appointed Matt Maddox, now President of the Company, as its CEO, and Boone Wayson as Non-Executive Chairman of the Board of Directors, effective immediately.

As mentioned above, recent times have been tough of Wynn Resorts as allegations of sexual misconduct against the CEO of the company started to surface.

MA gaming regulators, who concluded that Wynn met suitability standards, have since the Wall Street Journal report said the company and its namesake Wynn failed to disclose to investigators in 2013 that Wynn privately paid out a $7.5 million settlement to resolve sexual harassment allegations. He said, however, that the accusations had made it too hard to continue leading the company.

Wynn stepped down as the Republican National Committee's finance chairman a day after the Wall Street Journal's article was published.

Barry Schwartz of Baskin Wealth Management gives his outlook for shares of Wynn Resorts.

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JP Morgan also said it believed that Mr Wynn's resignation would pose limited impact on the operations at Wynn Macau, given its new developments in the city have been completed and same management team will be running the properties. Along with Wynn Palace in Cotai, the company built by Steve Wynn has been recognized as having more Five Star awards than any independent hotel company in the world. Maurice Wooden, the president of Wynn Las Vegas, is to join the Wynn Macau board.

This stands in contrast to the reaction of some within the GOP after Hollywood mogul Harvey Weinstein was accused by multiple women of sexual assault.

The accusations against him have also drawn scrutiny from gambling regulators in Nevada, Massachusetts and Macau. Wynn Resorts had a net margin of 11.85% and a return on equity of 148.17%.

As a result, it has been announced that Wynn will step down.


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