Massachusetts Gaming Commission sets hearing to weigh Wynn penalties
An adjudicatory hearing will be conducted by the Massachusetts Gaming Commission to determine whether Wynn Resorts Ltd. would be penalized in connection with the investigation of sexual harassment allegations against its founder and former CEO, Steve Wynn.
The hearing is expected to be conducted next month.
Four commissioners agreed Thursday to go forward with the hearing, which could take several days to complete. Following the hearing, commissioners would deliberate in a closed session to determine what actions, if any, it would take.
The commission is empowered to suspend or revoke a license or fine the company. Wynn Resorts is building the $2.5 billion Encore Boston Harbor resort on the Mystic River in Everett, Massachusetts, near Boston. The project is expected to be completed in June.
“We continue to support the Massachusetts Gaming Commission’s process,” Wynn Resorts said in an email after the meeting.
Thursday’s meeting was conducted without Stephen Crosby, who resigned late Wednesday because of accusations that he would be biased in reaching a conclusion about Wynn.
Crosby received letters complaining about his ability to conduct a fair hearing from lawyers for Steve Wynn and the operators of Mohegan Sun, a Connecticut-based tribal casino.
In his decision to resign, Crosby also referenced a six-count, $3 billion racketeering lawsuit filed against Wynn Resorts, Steve Wynn and current and former Wynn Resorts executives Sept. 17 by Sterling Suffolk Racecourse LLC claiming that the company coerced regulators into awarding it the eastern Massachusetts gaming license.
Crosby, who served as commission chairman since gambling in commercial casinos was first established in Massachusetts in 2011 and technically was the commission’s first employee, was applauded by fellow commissioners and staff at Thursday’s meeting.
Commissioners agreed by consensus that Commissioner Gayle Cameron would serve as interim chairwoman. Cameron is a retired New Jersey State Police deputy superintendent, the force’s second-highest rank.
Commissioners are expected to formally vote her interim chair at their next meeting.
It’s unclear how long it will take Massachusetts Gov. Charlie Baker to appoint a new chair.
General counsel Catherine Blue outlined the procedure for the adjudicatory hearing.
Blue said the hearing, similar to Nevada’s process on suitability hearings, would start with a report from the commission’s Investigations and Enforcement Bureau. Commissioners can take testimony from witnesses, including Wynn Resorts representatives. But Blue stressed that it won’t be a public hearing at which any member of the public could submit their views.
Blue said the commission could call a hearing over several days or have it all in one day.
At the conclusion of the hearing, the commission would gather in a closed session to deliberate over its course of action.
Once a deliberation is reached, commission staff would prepare a public document, probably within a week, that would be presented at a public meeting.
Commission regulations state that a licensee isn’t entitled to any further review after the commission’s decision, but can appeal to the courts.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
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Legal counsel Catherine Blue's explanation of the adjudicatory process
"The IED (Investigations and Enforcement Bureau) will present its report. Then, Wynn will be able to put on testimony. They may have witnesses, they may have documents. Both parties can submit exhibits and they will be marked and they will be included in the record, along with anything else, any oral testimony. The commissioners can ask questions of any participant, anyone from the commission staff, anyone from the Wynn group. They will all be represented by attorneys. Attorneys can ask questions of the witnesses as well.
"All of the testimony and evidence is taken in public so it will be available for you to see and others to watch. At some point when you believe you are done taking testimony — and that process can take as long as you need it to take — the hearing itself can be adjourned and can take place in small parts over several days or it can take place all in one day, whichever the commission is comfortable with. When you are comfortable that you have taken all the testimony that you want to take, you will adjourn the proceeding.
"You will then retire to deliberate in private. You can also take as long as you feel necessary to deliberate in private and you will deliberate until to come to a decision that you are comfortable with. Once you come to that decision, it will be put in writing and you will then get to review the proof and once you're comfortable with that decision, then that will be made public. I would imagine that that written decision will probably be drafted in a week or so after you've finished your deliberations, then you'll have it for your review. That's been the general time frame that we've had.
"But as I said before, you can take as long as you need to deliberate and you can do it in separate sessions or you can do it in long sessions, whatever is the commission's desire to do."
