The Massachusetts Gaming Commission has fined Wynn Resorts $35 million but will allow them to keep their state gaming license, the commission decided Tuesday after a year-long investigation into allegations of sexual assault and misconduct within the company. Wynn will still be able to operate the casino they are building in Everett.
According to the decision, although the commission did not find sufficient evidence to revoke Wynn Resorts' gaming license, "commissioners were profoundly disturbed by 'repeated systemic failures and pervasive culture of non-disclosure presented in the IEB report and adjudicatory hearing.'"
A spokesperson for Wynn Resorts said the company is "in the process of reviewing that decision and considering the full range of our next steps."
Chief Executive Officer Matthew Maddox, who replaced Steve Wynn last year amid sexual misconduct allegations against the company founder, was fined $500,000 because of what the commission called "his clear failure to require an investigation about a specific spa employee complaint brought to his attention" but will be allowed to stay on as CEO.
Wynn Resorts will also be subject to new license conditions, including an independent review of the company's adherence to policy changes.
Read more: Gaming Commission To Hold Hearings This Week On Wynn Suitability To Run Everett Casino
The commission found “numerous violations of controlling statutes and regulations largely pertaining to a pervasive failure to properly investigate in accordance with existing policies and procedures, and to notify the Commission about certain allegations of wrongdoing,” the decision stated.
Theinvestigation started after allegations surfaced that Steve Wynn, the former chief executive officer and chairman, sexually assaulted or harassed several women throughout his tenure at the company. In 2005, he paid a $7.5 million settlement to a former nail salon employee who accused him of rape. Another employee, who accused Wynn of pressuring her into a sexual relationship, received a $975,000 settlement. Wynn eventually stepped down from the company, but denied the allegations.
Wynn Resorts officials argue the company has fundamentally changed since the scandal.
Every top executive that actively covered up or failed to act on the allegations has been fired. The board of directors saw an infusion of new members, including three women, and new sexual misconduct policies have been instituted, such as the creation of an oversight panel to review sexual harassment claims led by a former Boston police commissioner.
But Gaming Commission members, during their April hearings, directed pointed questions at Maddox, who they criticized for authorizing spying on employees named in the Wall Street Journal's story, but not actually investigating the sexual misconduct claims. And, when asked by commission members to name at least one of the company's new sexual harassment policies, Maddox wasn't able to.
Maddox acknowledged he should have informed regulators about the allegations in 2018 because he and other company officials were aware of The Wall Street Journal's reporting weeks prior to publication.
Wynn's board of directors also must report attendance records to the commission for board and assigned committee meetings, and the company must train give all new employees anti-harassment and discrimination training within three months of opening.
The Associated Press' Philip Marcelo contributed to this report.
