The Nevada Gaming Control Board has handed down their largest fine ever to the tune of $20 million. Wynn Resorts Ltd. will have to pay this amount as part of a settlement involving Steve Wynn and the alleged sexual misconduct allegations reported against him.
This week, the Board announced the $20 million fine, the highest ever handed down by the regulatory body. The decision brings to an end the year-long investigation involving the company by the Board, as regulators tried to determine what should be done based on the allegations Steve Wynn faced.
In the past, the largest fine by the Board was for $5.5 million. It was against CG Technology, a company that focuses on sports betting and mobile gaming systems. Reportedly, certain members of the Board wanted Wynn Resorts to pay even more, but the amount suggested has not been revealed.
The Board stated that the issue was not about Steve Wynn as one individual, but rather the failure of the corporate culture to govern itself as it should. The investigation into the company found that members of the Board of Wynn Resorts knew about the allegations against Wynn but did nothing.
As part of the settlement order, the company was forced to see Wynn resign as CEO. Matt Maddox has taken his place as the CEO of the company. New board members were brought in with 50% of the board now consisting of females.
Tony Alamo, the Chairman of the Nevada Gaming Control Board, commented on the large fine by stating the Board was sending a message. The Board wants companies to know that ignoring this type of behavior is not going to be tolerated.
Steve Wynn still has lawsuits pending against him based on several allegations involving sexual misconduct. An investigation is also ongoing in Massachusetts, involving the company and their ability to maintain a casino license for the Encore Boston Harbor, a casino that is set to be opened by June of this year.