Wynn Resorts Loses $3.5 Billion After Sexual Harassment Allegations Surface About Steve Wynn
Call it the cost of sexual harassment allegations in the age of the MeToo movement.
Fallout from sexual misconduct accusations against casino mogul Steve Wynn continued Monday, with shares of his company Wynn Resorts (WYNN) falling another 9%. In total, Wynn Resorts has shed about $3.5 billion in value since the Wall Street Journal published a story on Friday detailing dozens of misconduct allegations against Wynn. Wynn Resorts is now valued at $17 billion.
Wynn, 76, himself has also shed much of his net worth as a result, losing roughly $412 million due to his holdings in the company over the past three days. That stake is now worth roughly $2 billion.
Wynn has denied the allegations and stepped down as the Republican National Committee Finance Chair. He remains CEO of Wynn Resorts.
But the pain isn’t abating for shareholders. The casino industry is sensitive, with moral clauses often attached to gaming licenses—fanning worries about how directly the allegations could impact operations.
And it’s the region of Macau that has investors most concerned. Macau accounts for the majority of Wynn’s business. On Monday, Bloomberg reported that Macau’s Gaming Inspection and Coordination Bureau is now talking with Wynn, which could complicate the company’s plans to continue expanding in the region.
The gaming commissions of Nevada and Massachusetts have also said that they are reviewing Wynn’s licenses.
Wynn is a pillar of his eponymous company, analysts say.
“A scenario where (Wynn resorts) doesn’t have Steve as a CEO is not good for the company,” wrote J.P. Morgan analyst Joseph Greff in a note Sunday. “We also have always held the belief that Steve Wynn, given his long history of creating shareholder value going back to his Mirage Resorts days, has received a premium multiple (on the stock) for his hands-on involvement.”