Photo by Steve Adams | Banker & Tradesman Staff
Despite “significant” and “repetitive” failures related to sexual misconduct allegations against founder Steve Wynn and the “considerable shortcomings” of its current chief executive, the Massachusetts Gaming Commission will allow Wynn Resorts to keep the lucrative Boston-area casino license, as long as the company pays a $35 million fine and adheres to a series of conditions.
The commission’s decision, issued in writing Tuesday evening and expected to be expounded upon Wednesday morning when commissioners hold their first public business meeting since cloistering themselves to determine Wynn Resorts’ fate, appears to clear the way for Wynn’s $2.6 billion Encore Boston Harbor casino to open as planned in less than two months.
Since April 5, the commission has been weighing whether Wynn Resorts, in light of an investigation that found a series of issues with the way the company handled sexual misconduct allegations against Steve Wynn and the changes the company has made in the year-plus since he left, remains fit to control the sole Boston-area casino.
“The commission has determined that the evidence does not rise to the level required to disturb the previous suitability determinations. It is troubled by the systemic failures and pervasive culture of non-disclosure,” the five commissioners wrote in the 54-page ruling. “While the company has made great strides in altering that system, this commission remains concerned by the past failures and deficiencies. Lastly, as stated at the adjudicatory hearing, the company’s laudable efforts do not erase the past failures so any resolution of these allegations necessarily requires an assessment of punishment and deterrence.”
The commission added, “Given our findings, it is now in the interest of the commonwealth that the gaming licensee move forward in establishing and maintaining a successful gaming establishment in Massachusetts.”
In its ruling, the commission wrote that the $35 million fine “is commensurate with the scope of the violations, and designed to be sizeable enough to have a meaningful impact.”
In addition to the $35 million fine, which tops the $20 million fine imposed by Nevada gaming regulators, Wynn Resorts CEO Matt Maddox will be individually fined $500,000 and ordered to undergo “coaching and training” around leadership development, appropriate internal communications and enhanced awareness of human resources issues.
Maddox, who was Steve Wynn’s hand-picked successor as chief executive and who worked with Wynn since the company’s 2002 founding, appeared to be a particular point of focus among the commission and its investigators during its three-day adjudicatory hearing earlier this month.
During the hearing, he explained that when he learned of at least three different settlements and alleged incidents involving Steve Wynn, he either did not believe the allegations to be true, was not concerned by what he was told about the settlement or did not think it was his duty to ensure that Massachusetts gaming regulators were notified.
Wynn Resorts officials were not immediately available to comment Tuesday evening.
Since the commission launched its investigation in February 2018, Wynn Resorts has been building its Encore Boston Harbor project on the Mystic River in Everett on a parallel track. The resort casino is more than 90 percent complete and the company expects to open it June 23.
Speaking to the Boston Business Journal’s editorial staff Tuesday, House Speaker Robert DeLeo said it is “very important” that the Everett casino open as scheduled.
“I would like to see the facility open, and I want to put people to work, and I think there are a lot of people waiting to get to work there,” he said.
The budget passed by the House last week relies on $98 million in revenue from Encore Boston Harbor in the fiscal year that starts July 1.
