Wynn Resorts Slapped With Record $20m Fine By Nevada Regulator
The Nevada Gaming Commission (NGC) has ordered Wynn Resorts to pay a massive $20 million fine, the largest fine imposed by the NGC against a gambling licensee in the state.
The fine was imposed due to the gambling operator’s handling of multiple sexual misconduct complaints against its founder Steve Wynn.
The fine which was announced this week has topped the previous record of $5.5 million imposed in 2014 against Cantor Gaming (now CG Technology) for their history of illegal betting activity.
The record fine was imposed to send a strong message to casino operators in the state of Nevada.
Reacting to the news, Emily Martin, Vice President for Education and Workplace Justice at the National Women’s Law Center, said the latest development only proves that concealing sexual abuse in the corporate world is a form of corruption that falls under the duties of the regulator. She wants everyone to now open their eyes to the broader harms and far-reaching consequences brought about by sexual harassment and assault.
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Sexual Misconduct Went On For Decades
Accusations against the billionaire casino mogul came to the fore following a Wall Street Journal report describing a pattern of sexual misconduct committed by Mr. Wynn that spanned decades. He stepped down as the company’s chairman and chief executive in February 2018 and did not receive severance pay. His shares in Wynn Resorts also went into liquidation.
Despite denying the allegations, Steve Wynn received intense backlash as a result of the public scandal, which resulted in his resignation as finance chairman of the Republican National Committee. He faced multiple lawsuits by shareholders, and became the subject of investigations conducted by a number of regulatory bodies. Mr. Wynn’s name was also taken down from different university buildings and programs.
Paradigm Shift To Wynn Culture
In January 2019, a settlement was reached between the NGC and Wynn Resorts which led to the latter retaining its gambling license in the state. The company admitted that several key people at the management level were aware of the complaints filed against the 77-year-old businessman.
Wynn Resorts also acknowledged a string of allegations laid out by the regulator, which the company failed to investigate. The company went on to release a statement saying it has refreshed its work culture and has made a paradigm shift to work culture over the past year.
The gambling operator reported that it had cut ties with all employees who had full knowledge but failed to act on the allegations brought against Mr. Wynn. Wynn Resorts also confirmed that almost half of its board is now made up of women.