Nevada Gaming Control Board Says Wynn Resorts Executives Knew of Alleged Sexual Misconduct

Posted on: January 29, 2019, 09:02h. 

Last updated on: January 29, 2019, 12:40h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

Wynn Resorts and the Nevada Gaming Control Board (NGCB) have reached a settlement after the state agency concluded its investigation into the company’s founder and his alleged sexual misconduct.

Wynn Resorts Nevada Gaming sexual misconduct
The Nevada Gaming Control Board has reached the conclusion that top officials at Wynn Resorts knew for many years about sexual misconduct allegations made against their company’s founder. (Image: Andrew Harrer/Bloomberg)

On Monday, Nevada gaming regulators issued a 22-page complaint against Wynn Resorts. The document details seven accounts where the NGCB believes executives at the casino company became aware of billionaire Steve Wynn’s alleged sexual misconduct, but did little in response.

In summary, the NGCB concluded that Mr. Wynn’s actions were “inappropriate and unsuitable.” Wynn Resorts has agreed to settle the charges. The company will retain its gaming license, but will pay a fine that will be determined by the Nevada Gaming Commission at a later date.

We have fully cooperated and been transparent with the board in this in-depth investigation,” Wynn Resorts said in a statement. “We look forward to appearing before the Nevada Gaming Commission to review the settlement and establish the final resolution of the investigation.”

The NGBC began its investigation almost immediately after the January 2018 Wall Street Journal expose on Steve Wynn that detailed decades of alleged sexual harassment and misconduct.

NGCB Findings

The NGCB details seven accounts where investigators believe company executives were informed of Mr. Wynn accusers.

Count One: A woman in 2005 claimed she was raped by Mr. Wynn and became pregnant with his child. The NGCB believes the allegations were known by then-Wynn Las Vegas President Marc Schorr and three other executives. The woman received a $7.5 million settlement, and Nevada investigators believe ex-Wynn General Counsel Kim Sinatra knew of the payment.

Count Two: The Gaming Control Board says a female cocktail server tells Schorr and Wynn Resorts attorney Kevin Tourek that she was pressured into unwanted sex with the billionaire between 2005-2006. She is later paid $1 million.

Count Three: NGCB investigators say a cocktail server in 2005 alleges that she told Schorr and Wynn President Maurice Wooden she was harassed by Mr. Wynn.

Count Four: In 2014, state investigators found that three female employees reported claimed sexual harassment by Mr. Wynn, and “several executives knew” about the allegations.

Count Five: The NGCB says a flight attendant on Mr. Wynn’s private jet in 2016 told Sinatra and Wynn Resorts attorney Stacie Michaels about being sexually harassed, but nothing happened.

Count Six: The Gaming Control Board finds that several employees reported to then-Wynn Resorts Chief Human Resources Officer Arte Nathan that an unidentified worker was responsible for facilitating sexual relationships for Mr. Wynn and his guests.

Count Seven: In 2007, the Board says Tourek received an email alleging that a former executive “loves sleeping with cocktail servers.”

Counts eight through 10 involve the NGCB alleging that Mr. Wynn wasn’t subjected to annual training regarding the company’s sexual conduct policies, as well as claims that Wynn management didn’t enforce sexual harassment reporting procedures.

Grave Consequences

While Nevada will allow Wynn Resorts to continue operating its Las Vegas casinos, the Massachusetts Gaming Commission (MGC) is finishing its own investigative report.

The $2.6 billion Encore Boston Harbor remains under construction, and regulators there want to know if Wynn executives purposely concealed known allegations of sexual misconduct during its 2014 bidding. The worst-case penalty scenario is the MGC revoking Wynn Resorts’ $85 million licensing fee.