66°F
weather icon Clear

Steve Wynn lawsuit delays Massachusetts decision on Wynn Resorts

Massachusetts Gaming Commission officials say they would have begun an adjudicatory hearing on the licensing of Wynn Resorts Ltd. by now had it not been for a lawsuit filed by former Chairman and CEO Steve Wynn last month.

State commissioners were scheduled to meet in a closed executive session Thursday to discuss the state’s legal strategy to fight the lawsuit Wynn filed in Clark County District Court.

Wynn’s lawsuit attempts to block the public release of an investigative report and names the commission, investigator Karen Wells of the commission’s Investigations and Enforcement Bureau, and his former company.

The investigative report is expected to have to do with accusations that Steve Wynn sexually harassed or assaulted employees and whether Wynn Resorts officials did anything to report or investigate the allegations, which Steve Wynn has denied.

The report and an adjudicatory hearing would determine whether Wynn Resorts is suitable to hold a license in the state — important because the company is building a $2.5 billion resort on the Mystic River in Everett, near Boston, due to open in June.

The Gaming Commission already determined in May that Steve Wynn is no longer a “qualifier” with any standing with the company and wouldn’t be a part of the adjudicatory hearing.

Wynn’s six-count lawsuit seeks to block the report’s release based on it containing or relying on Steve Wynn’s attorney-client privileged communications from Wynn Resorts’ six-year litigation against former business partner Kazuo Okada.

A hearing on that case is expected to occur next week.

Legal strategy discussion

The closed session addressing legal strategy was listed on Thursday’s commission agenda.

Interim Chair Gayle Cameron read a brief statement at the beginning of Thursday’s meeting addressing the closed session.

“I acknowledge that the commission and its staff are facing a complex set of circumstances and must balance consideration for due process, investigatory requirements, related litigation, and the overall integrity of the process,” Cameron said. “I’m also well aware of the intense and ceaseless effort that has been underway by MGC staff since January.”

Cameron explained that since commissioners sit as judges in an adjudicatory proceeding, they can’t have access to evidence and investigatory material in order to avoid prejudgment of the matter.

“I’m keenly aware of the shared frustrations over the desire to finalize this matter, which is now further complicated by litigation in Nevada,” Cameron said. “My fellow commissioners and I are ready to adjudicate this matter and eager to assess the findings. Identifying a viable way to bring this investigation to a close must be an urgent priority.”

Began in January

The investigation began in January after accusations emerged that Wynn sexually harassed employees over decades. An account in the Wall Street Journal alleged that Steve Wynn and the company did not disclose a $7.5 million settlement payment made to a former Wynn Resorts manicurist over a sexual harassment claim.

That settlement payment surfaced again last week in a derivatives complaint against Steve Wynn, the company, former and current executives and board members alleging that the sexual harassment accusations devalued company stock.

It was the third such lawsuit filed in connection with the company’s stock, which has declined in value by more than 35 percent since January.

Parallel investigations into sexual harassment matters have been conducted by the Wynn board of directors and the Nevada Gaming Control Board. The board of directors’ findings have not been released publicly. State Gaming Control Board Chairwoman Becky Harris said last month that its investigation took longer because there were more witnesses to interview.

The board consults in private with the attorney general’s office prior to filing any complaint against a licensee.

The board also forwarded proposed amendments to state regulations adding new requirements from licensees on sexual harassment matters. Under the proposal forwarded to the Nevada Gaming Commission last month, licensees would be required to report annually on harassment training.

Gaming Commission Chairman Tony Alamo said he would prefer the commission consider the harassment amendments after the Wynn investigation is aired.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.

Don't miss the big stories. Like us on Facebook.
Business Videos
How much do Las Vegas casino CEOs make?
Las Vegas gaming CEOs made anywhere between $1 million and $24 million last year, according to company filings with the U.S. Securities and Exchange Commission. ((Las Vegas Review-Journal)
30-year-old Rio needs a little TLC
Nearly 30 years after the Rio opened, the red and blue jewel that helped catapult Las Vegas to a new level with its buffet and nightclub has lost its status along with its shine.
The latest on the Drew Las Vegas - VIDEO
Eli Segall recounts his tour of the Drew Las Vegas, formerly the Fontainebleau, on the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
Pinball Hall of Fame to move near south Strip
Operators of the Pinball Hall of Fame have been approved to build a new, larger arcade near the south edge of the Strip on Las Vegas Boulevard near Russel Road. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
National Hardware Show underway Las Vegas
The National Hardware Show kicked off Tuesday at the Las Vegas Convention Center (Mat Luschek / Review-Journal)
Caesars for sale?
Caesars Entertainment Corp. has been swept up in takeover speculation since the company’s share price tumbled last year amid disappointing earnings and concerns over a recession. Amid the decline, hedge funds scooped up shares. Billionaire activist investor Carl Icahn began buying shares of Caesars as early as January. Icahn acquired nearly 18 percent by mid-March. In February Icahn called on the Caesars board to study a sale as a way to boost shareholder value.
Las Vegas home prices
Las Vegas home prices grew fastest among major markets in February for the ninth straight month. But amid affordability concerns, the growth rate has slowed down. Southern Nevada prices in February were up 9.7% from a year earlier, according to the latest S&P CoreLogic Case-Shiller index. The last time Las Vegas' price growth fell below 10% was in September 2017, S&P Dow Jones Indices reported.
Free Parking Coming To Wynn
Free parking will come to the Wynn and Encore resorts on May 1, 2019. (Mat Luschek / Review-Journal)
Founding Venetian employees talk about 20 years at the Strip resort
The Venetian, which opened May 3, 1999, is celebrating 20 years on the Las Vegas Strip. Seven original employees talk about opening the luxury resort and working there for two decades. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Circa aiming for December 2020 opening
The 1.25-million-square-foot property will have 44-stories and 777-rooms. It will also have a separate nine-story, 1,201-space parking garage.
Boxabl official explains the building concept
Boxabl business development manager Galiano Tiramani shows off a room built by his company. (Blake Apgar/Las Vegas Review-Journal)
TI/Mirage Tram reopens
The tram that shuttles guests between TI and Mirage reopened this week after being closed for much of 2018.
Las Vegas Convention Center expansion taking shape
Renderings and actual footage show how the Las Vegas Convention Center is evolving.
Former Starbucks CEO Howard Schultz at Las Vegas convention
Former Starbucks CEO and potential presidential candidate Howard Schultz spoke at the Epicor Insights user conference at Mandalay Bay Convention Center Wednesday, April 17, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Drew Las Vegas to open in the second quarter of 2022
The 67-story Drew Las Vegas is slated to open in the second quarter of 2022 at the north end of the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
NAB Day 1 (Time Lapse)
NAB kicked off at the Las Vegas Convention Center on Monday, April 8, 2019. (Mat Luschek / Review-Journal)
National Association of Broadcasters Show shows 1mm thick 8K TV with 22.2 channel digital sound
Japan’s NHK Science & Technology Research Laboratories booth featured a 1mm thick 8K TV system used in conjunction with a 22.2 channel digital sound system at the National Association of Broadcasters Show at the Las Vegas Convention Center. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Nevada shoppers react to Smith’s no longer accepting Visa credit cards
On March 1, Smith’s announced that it would no longer be accepting Visa credit cards at any of its 142 supermarkets, including the 45 in Nevada.
Massachusetts Gaming Commission asks how long Wynn executives knew about misconduct
Business reporter Rick Velotta gives an update on the adjudicatory hearing on the suitability of Wynn Resorts to retain its gaming license in Massachusetts.
Henderson app developer part of Startup in Residence
Henderson based developers of the app On Point Barricade are taking part in Startup in Residence, a North America program dedicated to pairing tech companies with governments. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Sam's Town employees and customers talk of their love for the iconic casino
Longtime Sam's Town employees and customers love each other and love their casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Las Vegas apartments rents
Las Vegas’ apartment market has accelerated in recent years. Developers are packing the suburbs with projects, landlords are on a buying spree, and tenants have filled buildings.
William Boyd talks about the birth of Sam's Town
On the eve of the 40th anniversary of Sam's Town, William Boyd, executive chairman of Boyd Gaming and son of hotel namesake Sam Boyd, talks about how the casino became one of the first local properties in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
High Roller observation wheel turns five
The world’s tallest observation wheel celebrates it’s fifth year on Sunday, March 31, 2019. (Michael Quine/Las Vegas Review-Journal) @Vegas88s
Escape Room Industry Growing In Las Vegas
Escapology employees discuss the growing escape room industry in the U.S. and Las Vegas. (Bailey Schulz/Las Vegas Review-Journal)
Impact of parking fees on visiting the Las Vegas Strip
There are no data showing a relationship between Strip resort and parking fees and the number of out-of-state visitors to Las Vegas. But there are data showing a relationship between Strip parking fees and the number of local visitors to the the Strip. ‘’As a local, I find myself picking hotels I visit for dinner or entertainment, based on whether they charge for parking or not,”’ said David Perisset, the owner of Exotics Racing. ‘’It is not a matter of money, more of principle.’’ A 2018 survey by the Las Vegas Global Economic Alliance found 36.9 percent of Clark County residents reported avoiding parking at Strip casinos that charge for parking. 29.1 percent reported avoiding using any services from a Strip casino that charges for parking.
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Faraday puts Las Vegas land on the market
Nearly two years after Faraday Future bailed on its North Las Vegas auto factory, the company has put its land up for sale. (Michael Quine/Las Vegas Review-Journal)
El Cortez owner Kenny Epstein on running the iconic property
Kenny Epstein, owner of the El Cortez Hotel in downtown Las Vegas, talks about Jackie Gaughan mentorship and answers rumors about bodies in the basement at the mob-era casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
LVCVA recommends construction of underground people mover
The Las Vegas Convention and Visitors Authority announced the recommendation for an underground people mover for the convention center. The system would have the potential to expand and connect Downtown and the resort corridor all the way to McCarran. (Michael Quine/ Las Vegas Review-Journal)
THE LATEST