Wynn Resorts Ltd. settled a probe by Nevada regulators over how it handled sexual-misconduct allegations against former Chief Executive Officer Steve Wynn, lifting a cloud hanging over the casino giant.
The company will pay an unspecified fine as part of the agreement, which will now be reviewed by the Nevada Gaming Commission. Regulators said they will not seek to revoke or limit Wynn’s licenses in the state, a gambling mecca that includes the Las Vegas Strip.
Nevada was one of several jurisdictions investigating Wynn, with regulators from Massachusetts to Macau probing allegations that surfaced in the Wall Street Journal last year. They included reports that the longtime company co-founder pressured massage therapists to perform sex acts and paid $7.5 million to settle claims he forced himself on a manicurist.
Independent directors of Wynn Resorts launched their own investigation. The company -- now run by CEO Matt Maddox -- also added more women to its board and overhauled its policies.
“We have undergone an extensive self-examination over the last 12 months,” the Las Vegas-based company said in a statement.
The tentative settlement with the Nevada Gaming Control Board supported the idea that Wynn had cleaned house after the scandal broke last year -- signaling that current employees won’t be punished.
“These 25,000 employees, led by CEO Matt Maddox and a reshaped board of directors, are the company that stands before the commission today, and not Steve Wynn,” the settlement read.
Any employee mentioned in the Nevada Gaming Control Board report who was aware of allegations directed at the previous CEO -- and didn’t investigate or report them -- is no longer with the company, Wynn Resorts said.
Wynn, who served as chairman and CEO, resigned in February in the wake of the allegations that went back decades. He also gave up control over ex-wife Elaine Wynn’s shares of Wynn Resorts, ending a legal fight.
Regulation 5, an often-cited chapter in Nevada casino law, says state regulators must require that all establishments operate in a “manner suitable to protect the public health, safety, morals, good order and general welfare” of state inhabitants.
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