People have been equating Wynn and Steve Wynn for years. The man embodied the casino, and the casino represented the man.
A Wall Street Journal story (paywall) containing severe allegations of sexual harassment against the casino tycoon led to a significant change in the situation.
The narrative was released on January 27. Initially, Wynn firmly defended himself, denying the allegations. But as further details surfaced, he stepped down as CEO of Wynn Resorts on February 6. Furthermore, he also resigned from his identical position at Wynn Macau and withdrew his role as finance chair of the Republican National Committee.
Wynn Resorts will have Mark Maddux as their new CEO.
With the departure of the man who established the brand, many questions about the future of Wynn Resorts have arisen. Some of these inquiries are fairly minor, such as whether its announced expansion in Las Vegas will proceed.
Others bear significantly greater consequences, specifically, the risk of the company losing its gaming license in both Nevada and Massachusetts.
Wynn’s future seemed bright
Just days after an earnings call filled with positive news for the company, accusations were made against Wynn. Their Asian casinos have been making substantial profits, enough for the company to purchase an extra plot of land on the Las Vegas Strip. This is intended for a second new project, Wynn West.
Looking back, it’s probable that these announcements were made with prior knowledge of the upcoming WSJ story. Despite positive news, the company’s stock price took a hit, plunging from a high of $200.6 to a mere $163.5.
Calls for Wynn’s resignation flooded in as the stock plummeted. The falling stock value wasn’t the only concern, as both the Nevada and Massachusetts Gaming Control Boards declared they would scrutinize whether the company should retain its gaming license. Wynn, who currently runs two casinos in Nevada, is also developing a billion-dollar property in Boston, MA.
Does resignation keep the casinos in the clear?
Though Wynn is no longer a board member of the casino company, the situation is still unresolved. Both gaming commissions plan to persist with their investigations into the alleged incidents.
In her first meeting as the new Chairwoman of NGCB, Becky Harris did not mention Wynn’s name at all. But, after the meeting she confirmed to the Las Vegas Review-Journal that the investigation would persist despite Wynn’s departure.
The Review-Journal also reported in its story that Massachusetts gaming officials intend to proceed with their investigation.
The groups are investigating not only the harassment claims, but also a dubious settlement payment of $7.5 million made by Mr. Wynn to a woman. They are particularly examining the potential use of a shell company by Wynn to conceal these funds.
Despite Wynn’s resignation, the Nevada properties remain susceptible to fines and citations.
Could someone buy up Wynn?
With the departure of the visionary Wynn, it could be argued that it’s time for another company to take over. However, according to MGM Resorts CEO Jim Murren, this assumption would be wrong.
Murren, while giving an interview from Tokyo on Friday, discussed the company’s activities in Asia. He expressed skepticism when asked about the potential megadeal acquisition of the Wynn brand.
“He explained that it’s a significantly large organization. It would be hard to imagine any entity having the financial strength to seriously bid for them,”
Image sourced from Shutterstock.com, courtesy of Michael Gordon.
