Nevada Gaming Control Board vs. Wynn Resorts

On January 25 the Nevada Gaming Control Board filed a complaint against Wynn Resorts, owner and operator of the luxurious Wynn and Encore hotel/casinos on the Las Vegas Strip. In that complaint, the Gaming Control Board asks the Nevada Gaming Commission to fine Wynn Resorts and "take action against" the licenses held by the company.

Las Vegas Review-Journal,  January 28, 2019

The complaint contains numerous allegations of sexual misconduct by Wynn executives, including Steve Wynn himself. Even worse is the Gaming Control Board's claim that various senior executives were aware of these incidents, but did not report or investigate them -- a violation of the company's own sexual harassment policy. Even the chief human resources officer and three separate people who held the position of general counsel are said to have failed to act in this regard.

In other words, the company did not apply its own policies and procedures to Mr. Wynn. And it goes beyond that. A former Wynn employee now stands accused of facilitating sexual relationships between cocktail servers and guests of Wynn Resorts (see page 16 of the complaint; link below).

Read the complaint:

Nevada Gaming Control Board vs. Wynn Resorts

Complaint, January 25, 2019

The following is a summary of the allegations contained in the Gaming Control Board's January 25 complaint.

• A Wynn employee complained to her supervisor that she had been raped by Mr. Wynn and became pregnant as a result. The company settled this complaint for $7.5 million. See page 9 of complaint. 
• A cocktail server at Wynn Resorts claimed that Mr. Wynn pressured her into a nonconsensual sexual relationship. Wynn Resorts settled this claim for $975,000. See page 11.
• A former Wynn cocktail server and flight attendant claimed that Mr. Wynn engaged in sexual misconduct against her. See page 12.
• Separately, a flight attendant sent Mr. Wynn a letter alleging that he had engaged in sexual harassment with several flight attendants. See page 14. 
• Three employees of Wynn's Encore Spa claimed that Mr. Wynn engaged in sexual harassment during massages that were performed on him. See page 13.
• A former general counsel of Wynn Resorts received an e-mail alleging that a former executive "loves sleeping with cocktail servers". The general counsel did not investigate or report the matter, according to the complaint. See page 17.

About a year ago,  some of these accusations were made public in the Wall Street Journal. At that point, the Board of Directors of Wynn Resorts began investigations. Wynn has since resigned his position and divested all his holdings in the company.

It is not clear to me why it took the Nevada Gaming Control Board so long to file the January 25 complaint. A year has passed since the Wall Street Journal published its article. Perhaps that's how long it took for the Wynn board to complete its own investigation.

Speaking of the company's board of directors, many of the allegations in the complaint relate to things that happened over 10 years ago.  How could something so wrong go on for so long without coming to light? Why didn't the board come to grips with this sooner?

You may wonder why I have put so much effort into writing this post. And I shall tell you. If the January 25 complaint is accurate, Wynn Resorts has committed an outrage against its own employees and against the city of Las Vegas. Worst of all, of course, is the damage done to employees. But there's a business concern as well. This sordid tale fulfills the coarsest "Sin City" myths and expectations that so many people have come to believe. That tarnishes the reputation of our city. It's bad for business in so many ways. Just as an example, stories like this make it harder for local companies to recruit quality employees to relocate to Las Vegas. No wonder we have a shortage of doctors in this town.

Read the story in the Las Vegas Review-Journal:

Wynn Resorts admits wrongdoing, Nevada regulators find more sexual misconduct allegations

by Todd Prince and Richard N. Velotta, January 28, 2019

UPDATE: On February 26, the Nevada Gaming Commission fined Wynn Resorts $20 million for the conduct outlined in the complaint, according to The New York Times.  This follows a settlement reached between the Gaming Control Board and Wynn Resorts. The timeline for the settlement is curious. All parties signed the settlement on January 25. That is the same day the Gaming Control Board filed its complaint.  I wish I had a better understanding of this timeline. Why didn't the Gaming Control Board mention the settlement in the complaint? Or was the settlement speedily reached after the complaint was filed and signed on the very same day?