Massachussets Gaming Commission: "Our investigation on the Wynn case aggressively continues"

The Massachusetts Gaming Commission is “aggressively” continuing its investigation into the suitability of the gaming license for the under-construction Wynn Boston Harbor casino in the wake of Wynn Resorts Ltd. CEO Steve Wynn’s resignation.

Wynn's resignation, announced late Tuesday evening, follows a torrent of sexual misconduct allegations by women who had worked in Wynn resorts, sparked by a Wall Street Journal investigation published Jan. 26. Former Wynn Resorts President Matt Maddox has succeeded Wynn as CEO, while Boone Wayson has been named non-executive chairman.

Meanwhile, the Massachusetts Gaming Commission is considering Steve Wynn's continued stock ownership, his management control and influence, as well as his brand and financial impact, MGC Executive Director Edward R. Bedrosian Jr. said at a commission meeting Wednesday afternoon.

“Our investigation aggressively continues, and our expectation of cooperation on behalf of our licensees is very high given the gravity of these issues,” Bedrosian said at the meeting. “The (investigations and enforcements bureau) is working, even as we speak, to get answers to these new issues and will consider Steve Wynn’s resignation in their analysis; however, it will not stop their work.”

Wynn could receive $330 million upon stepping down from his company, Fortune reported on Wednesday. And the mogul is expected to retain his 12 percent stake in Wynn Resorts Ltd. and live in his villa at his Las Vegas casino for another year, the Wall Street Journal reported.

Shares of Wynn Resorts were trading up as high as 10 percent Wednesday following the news of Wynn’s resignation. As of late afternoon Wednesday, shares were up 8.1 percent to $176.45.

The MGC has said its investigation into the suitability of Wynn’s license to operate a casino in Massachusetts will have especial focus on a secret $7.5 million settlement Wynn Resorts paid to a manicurist at Wynn Las Vegas resort who alleged Steve Wynn pressured her into having sex with him. That settlement was initially reported in the Wall Street Journal and confirmed by the MGC last week, with investigators saying it will be a “critical element” in its review.

Speaking by telephone at Wednesday’s meeting, MGC Board Chair Stephen Crosby asked Bedrosian whether either Maddox or Wayson had knowledge of the $7.5 million settlement. Bedrosian said he could not answer but would expect that inquiry to be part of the investigation.

“A central question is: what did the board of directors and staff know, and when did they know it, about the settlement and the associated allegations?” Crosby said via telephone conferencing at the meeting. “That’s a critical point for us and for the public of Massachusetts to know (as soon as possible).”

A Wynn spokesperson declined to comment on whether Maddox or Wayson had knowledge of the $7.5 million settlement.