Casino mogul Steve Wynn’s former company was fined a record $20 million by Nevada gambling regulators on Tuesday for failing to investigate claims of sexual misconduct made against him before he resigned a year ago.
The penalty against Wynn Resorts Ltd. ends an investigation that began after The Wall Street Journal reported that several women said the company founder harassed or assaulted them.
Wynn Resorts will keep its gambling license under the Nevada Gaming Commission settlement approved by four commissioners who set the fine.
“It’s not about one man,” said Commissioner Philip Pro, a former federal court judge. “It’s about a failure of a corporate culture to effectively govern itself as it should.”
The previous highest fine in state history was $5.5 million in 2014 against the sports betting and mobile gambling system company now known as CG Technology.
Steve Wynn himself was not part of the settlement, and neither Wynn nor any personal representatives attended the commission hearing. Wynn has denied all allegations against him. One of his attorneys, Colby Williams, said by telephone that he was aware of the fine but declined to comment.
Wynn Resorts acknowledged in settlement documents that several former board members and executives knew about but failed to investigate after Wynn paid $7.5 million in 2005 to a former salon employee who alleged he raped her and that she became pregnant as a result.
The company also failed to investigate a cocktail server’s allegation that from 2005 to 2006 Wynn pressured her into a nonconsensual sexual relationship, the documents said. Wynn paid a $975,000 private settlement to that woman and her parents, the settlement said.
Wynn Resorts neither admitted nor denied that company executives were made aware of allegations that Wynn sexually harassed multiple flight attendants on company aircraft.
A company settlement also is pending in Massachusetts, where gambling regulators launched a similar investigation of whether Wynn Resorts should be allowed to operate a more than $2 billion Boston-area casino resort slated to open in June.
Steve Wynn sued to prevent release of a Massachusetts Gaming Commission report about that probe, arguing it contains confidential information that is protected by attorney-client privilege. A hearing is scheduled Monday before a Nevada judge who has temporarily blocked release of that report.
