Wynn Resorts has decided not to appeal record fine in Massachusetts as it wants to focus full attention on Encore Boston Harbor’s nearing opening
Wynn Resorts has paid its $35.5 million fine to the Massachusetts Gaming Commission, but let the regulator know that it was unhappy about the criticism thrown at its CEO Matt Maddox in a statement issued on Tuesday.
Following a months-long probe and an extensive three-day hearing on its suitability to retain its gaming license in Massachusetts, the casino company was allowed to remain the operator of what would be the state’s second full-scale commercial casino resort but was slapped a record fine, which it had up until May 31 to pay to the Gaming Commission or appeal.
The prolonged and thorough investigation stemmed from a damning report published by the Wall Street Journal in January 2018 that detailed a decades-long pattern of sexual misconduct by Wynn Resorts’ founder and former head Steve Wynn.
In a Tuesday statement, the company said that it has decided to pay its $35 million fine to MassGaming as well as the $500,000 one imposed to its CEO as it wants closure of the matter so it can focus its full attention on the upcoming opening of Encore Boston Harbor, its $2.6 billion integrated resort located in the lucrative Greater Boston region.
Protesting CEO Criticism
While the casino operator was clearly pleased with MassGaming’s decision to let it keep its license in the state, it defended its current boss after he was subjected to severe criticism from Massachusetts gaming commissioners during last month’s hearing.
State gaming regulators chastised Mr. Maddox, who stepped in as Wynn Resorts CEO last year after Mr. Wynn’s departure, for failing to spot certain red flags about the improprieties taking place at the company. Mr. Maddox had served as President of the Las Vegas casino and hospitality powerhouse before the scandal broke out last year.
The Wynn Resorts boss received a $500,000 fine for his individual failures and was instructed to undergo leadership training.
In its Tuesday statement, Wynn Resorts said that its “Board of Directors disagrees with a number of the Commission’s comments and conclusions regarding Matt, and believes they are not supported by the evidence” and that it would “support his decision to exercise his rights and appeal the fine imposed upon him, and believe he would rightly prevail in his appeal.”
The statement read further that the “appeal would delay the final conclusion of this matter, and therefore we appreciate Matt’s decision to forgo an appeal in order to allow closure for the Company.”
Upcoming Opening
MassGaming’s spokeswoman, Elaine Driscoll, confirmed on Tuesday that the regulator has received a payment from Wynn Resorts. In a statement, she said further that the company has “accepted the conditions outlined in the written decision.”
Ms. Driscoll went on to say that the commission will now look to ensure compliance with the requirements it has imposed as it “looks forward to a successful June 23 opening of Encore Boston Harbor.”
The $2.6 billion property is located along the Mystic River in the City of Everett. It will feature a 27-floor hotel tower with 671 rooms and 104 luxury suites, a number of food and beverage facilities, a casino with more than 4,000 gaming positions, a public harborwalk and park, and MICE facilities, among others.
It emerged earlier this month that Wynn Resorts was considering the possibility to sell the property to rival MGM Resorts International. The latter company currently operates an integrated resort in Springfield, Massachusetts. Sale talks quickly broke off after overwhelmingly negative reactions from the host communities of both MGM Springfield and Encore Boston Harbor.
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