The company's Board claims the appeal "would delay the final conclusion of this matter"

Wynn won't appeal Massachusetts' decision and pays record USD 35.5 M fine

"Wynn Resorts looks forward to opening Encore Boston Harbor on June 23, which will be the first Five-Star gaming resort in New England,” Wynn's Board of Directors stated on Tuesday.
2019-05-29
Reading time 2:25 min
Wynn's directors stated that they do not agree with the finding that current CEO Matt Maddox violated company policy. Despite they would back his decision to appeal the USD 500,000 fine imposed upon him, they "appreciate Matt's decision to forego an appeal in order to allow closure for the company," and delivered payments for both of the fines to the Massachusetts Gaming Commission.

The Board of Directors of Wynn Resorts issued a statement on Tuesday regarding the decision of the Massachusetts Gaming Commission, which at the beginning of the month fined the company USD 35 million for not disclosing sexual misconduct allegations against founder and former CEO Steve Wynn, but allowed the casino operator to keep the license for its new USD 2.6 billion casino near Boston due to open in June.

The Board confirms that the company will not file an appeal, and appreciates the findings by the Gaming Commission regarding their suitability by “clear and convincing evidence.” “However, we do not agree with the finding that (current CEO) Matt Maddox violated Company policy, and are pleased that neither the Commission's Investigation and Enforcement Bureau, nor the Special Committee of the Board, found that he, or any other current Company executives, violated any Company policies in managing the allegations against the Company's founder,” the statement adds.

Furthermore, Wynn’s directors disagree with a number of the Commission's comments and conclusions regarding Maddox —which resulted in a USD 500,000 fine for his “clear failure” to investigate at least one misconduct complaint—, and believes they are not supported by the evidence. Despite they would back his decision to appeal the fine imposed upon him, and believe he would prevail, the Board considers that appeal would delay the final conclusion of this matter: “Therefore we appreciate Matt's decision to forego an appeal in order to allow closure for the Company. The Company will pay the fine imposed on him and has today delivered payment of that, and the Company's fine, to the Commission.”

A spokesperson for the Massachusetts Gaming Commission confirmed the fine payments and said the company has accepted the conditions commissioners outlined in April, including the appointment of a monitor by the Gaming Commission to oversee Wynn Resorts’ operations of the property for three years at the company’s expense. The commission has begun the process of selecting a monitor. “The five-member commission will now ensure compliance with the imposed requirements as they look forward to a successful June 23 opening of Encore Boston Harbor,” a statement from the commission said.

The Board also recalls that the Nevada Gaming Control Board, under whose jurisdiction the alleged activities of Steve Wynn occurred, conducted its own year-long investigation and recently reaffirmed Matt Maddox's good standing in Nevada, and praised him for creating a "paradigm shift" and for taking “impressive” corrective actions. “We believe Matt's leadership has been, and will continue to be, essential in our transformation from a founder-led company to an innovative global corporation. Matt has created a more diverse, inclusive and respectful workplace culture – all while maintaining focus on executing the Company's business plan,” the company says.

“The Board and executives of the Company look forward to working with the Massachusetts Gaming Commission staff on an implementation plan of the imposed conditions that meets the Commission's and Company's mutual goals. Wynn Resorts looks forward to opening Encore Boston Harbor on June 23, which will be the first Five-Star gaming resort in New England,” Board’s statement concludes.

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