Wynn Resorts might push back the opening of its latest property after being punished with a record $35.5 million fine in Massachusetts
The $2.6 billion Encore Boston Harbor integrated resort could open doors a “week or two” past its scheduled June 23 launch, Wynn Resorts CEO Matt Maddox said Thursday during the company’s first-quarter earnings conference call.
The Massachusetts Gaming Commission has recently slapped a record $35.5 million fine on the Las Vegas gaming and hospitality giant for failures to detect and address properly a decades-long sexual misconduct pattern by its founder and former boss Steve Wynn.
In a detailed report published in January 2018, the Wall Street Journal broke the news of multiple sexual misconduct incidents involving the disgraced casino billionaire and company staff that had occurred throughout the years. The scandal quickly swelled to massive proportions and prompted probes by the gambling regulators of the territories where Wynn Resorts operated or was planning to operate casino properties, including Nevada, Massachusetts, and Macau.
A Record Fine
The Massachusetts Gaming Commission, after a fair number of delays mostly caused by Mr. Wynn himself, was eventually able to publish the results of its own probe and to hold the necessary adjudicatory hearing before deciding on Wynn Resorts’ future in the state in April. The scandal could have cost the operator’s license to operate Encore Boston Harbor.
At issue was Wynn Resorts’ failure to notify the Massachusetts regulator about the sexual misconduct incidents and to address the allegations leveled against the company’s ex-boss in a timely and proper manner. MassGaming allowed the casino operator to keep its license for the operation of a resort in the lucrative Greater Boston area, but levied a record fine that aimed to serve as an indicator of the seriousness of Wynn Resorts’ violation and a “message of deterrence to ensure further compliance.”
The casino operator has up to May 31 to pay the $35-million fine. A separate $500,000 fine was slapped on Mr. Maddox, who took over as CEO of Wynn Resorts last year after Mr. Wynn stepped down in the wake of the Wall Street Journal report.
Opening Could Be Pushed Back
Wynn Resorts invested more than $2.6 billion into the development of a luxury integrated resort along the Mystic River in Everett near Boston. The property, which is set to include a hotel, a casino, multiple food and beverage facilities, meeting and convention space, and a waterfront boardwalk, among other amenities, is set to open doors on June 23.
Mr. Maddox said during the Thursday earnings call that he does not know “if the opening date will be June 23, or a week or two later, because we’re going to make sure that it’s flawless.” The executive further elaborated that “clearly the regulatory complexity we’ve been through has been a challenge.” Yet, he noted that “the property looks great.”
Wynn Resorts is currently reviewing MassGaming’s ruling and fine and is evaluating its options “under applicable law.” Mr. Maddox said Thursday that if they choose to appeal, this is not likely to impact the scheduled end-of-June opening of the Greater Boston resort.
Follow us on Facebook and Twitter to stay up to date on the day’s top casino news stories.
