The Massachusetts Gaming Commission released a report Tuesday detailing how Wynn Resorts handled accusations of rape and sexual misconduct against founder and former CEO Steve Wynn, and said the company hid these allegations from regulators.
Several remedial measures the company has taken in the wake of the incident are confirmed in the report. These include the naming of the casino's new CEO, Matt Maddox, Wynn "completely separating from the company" within weeks of the allegations coming to light and the board of directors establishing a special committee that conducted an in-depth review of these allegations.
The 199-page report says that these changes don't erase the company's corporate failures.
A hearing is being held over the next three days that will determine if Wynn Resorts will be able to keep their gaming license, which it won in 2013.
Wynn Resorts recently went through a review before the Nevada Gaming Commission where it received a record $20 million fine but was allowed to keep its casino license.
The company has been working to open Encore Boston Harbor Resort in Everett, Massachusetts. If this hearing results in the company losing its gaming license, it will seriously hurt the $2.6 billion project on the Mystic River near Boston. The resort is expected to open in June.
Wynn's name was removed from the Encore project to distance it from the allegations against Steve Wynn.
The allegations against the executive first surfaced after a January 2018 article in The Wall Street Journal, which said several women claimed Wynn had harassed or assaulted them. Wynn has denied the allegations. He stepped down as chairman in February last year. He sold his entire stake in the company by March.
-CNBC's Contessa Brewer contributed to this report.
from Top News & Analysis https://ift.tt/2uIicUy
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