Wynn Resorts has been in a fierce legal battle with its former CEO over allegations of sexual misconduct. This week, it’s being reported that Steve Wynn is paying millions in a settlement with the company. It’s a tough blow for the casino mogul, who continues to deny all of the charges against him.
It’s not a great spot that Wynn Resorts finds itself in, either. Now is the perfect time to look at what exactly is going on with this situation.
Allegations Against Steve Wynn and Wynn Resorts
Steve Wynn was once considered one of the most powerful men in the gambling industry. He founded Wynn Resorts International, a massive casino company with properties located all over the world. Over the past two years, however, he’s been involved in various scandals that have severely damaged his reputation.
In January of 2018, several women came forward with allegations of sexual misconduct by Mr. Wynn. Several of these women were employees of Wynn Resorts. They claim that while CEO, Steve Wynn demanded nude massages and sex acts.
Immediately after these allegations came to light, Wynn and his team of lawyers began denying the accusations. Things didn’t improve, and by February he officially stepped down as CEO of the company.
Since this time, even more allegations have come up. Wynn responded by selling all of his shares in the company and remaining out of the public spotlight. Wynn Resorts, however, began demanding payment from Wynn for the damage he caused to the company.
Wynn and his former company have been fighting in court ever since. This week, news has come out that the old CEO has agreed to a settlement.
Steve Wynn is Paying Millions to Wynn Resorts
Shareholders of Wynn Resorts were obviously concerned with these allegations. Even with Mr. Wynn’s departure, the company found itself in the middle of a major controversy. A lawsuit against Steve Wynn was eventually made.
“By engaging in this conduct, whether consensual or not, Mr. Wynn disregarded Wynn Company’s policies and procedures,” the complaint said.
That’s certainly hard to argue. Wynn clearly broke several rules as CEO of the company and even attempted to cover his tracks with settlements.
This week, Wynn Resorts won its first court battle. Steve Wynn is paying millions in a settlement with the company. $20 million is being paid personally by the former CEO. Insurance carriers will be paying out an additional $21 million to the company.
Wynn Resorts has also agreed to change its corporate governance. The roles of chairman and CEO are going to be separated.
Company officials certainly have reason to celebrate the legal victory.
Wynn Resorts Continues to Look for Overseas Expansion
Even with the company’s recent controversy, Wynn Resorts remains one of the biggest and most profitable casino operators in the world. It owns several major venues in Las Vegas, some of which are said to be the best in the city. Recently, the company has focused hard on breaking into the newly-emerging Japanese casino industry.
Japan legalized casino gambling last year. The government officially approved three casino-resorts to open in the country. Unfortunately, it will be years before any of these gambling venues officially begin operating.
Despite the long wait, many of the world’s biggest casino companies are working on ways to obtain a license here. MGM Resorts, Las Vegas Sands, and Wynn Resorts are just a few that have expressed a desire to operate in Japan. It’s still unclear which of these companies will obtain one of the available casino licenses.
Steve Wynn is paying millions to Wynn Resorts. This company will certainly help with more expansion plans overseas. Ultimately, though, Wynn Resorts continues to generate the majority of its revenue from the many hotel-casinos it owns around the world.
There’s a lot happening in the US casino industry right now. Stay tuned for more updates on Wynn Resorts’ situation over the next few months!