Massachusetts Fines Wynn Resorts $35 Million
The fallout over sexual misconduct allegations against casino mogul Steve Wynn continues to haunt the company he founded.
Gaming regulators in Massachusetts have fined Wynn Resorts $35 million for not disclosing the charges when applying for a casino license near Boston. However, they stopped short of revoking the company’s license and the 671-room casino is expected to open in June.
Additionally, current CEO Matthew Maddox is being fined $500,000 for his role in the matter.
Wynn, who resigned as CEO last February and did not receive any severance, has denied the allegations of non-consensual sex. He sold his entire stake in the company for $2.1 billion last March, considerably less than it was worth before the accusations surfaced.
The Massachusetts ruling follows a similar penalty from casino officials in Nevada, who hit the company with a $20 million fine in February.
Wynn was accused of repeated sexual misconduct over a period that spanned decades, with one incident leading to a $7.5 million settlement between Wynn and a former manicurist at his resort who said the executive pressured her to have sex with him.
“The corporate culture of the founder-led organization led to disparate treatment of the CEO in ways that left the most vulnerable at grave risk,” said the Massachusetts Gaming Commission in a statement. “While the Company has made great strides in altering that system, this Commission remains concerned by the past failures and deficiencies.”