Nevada judge extended Friday block on the much-anticipated release of report into Wynn Resorts’ suitability to run Massachusetts’ second commercial casino
A Nevada judge extended on Friday a temporary ban on the release of a report by the Massachusetts Gaming Commission on how Wynn Resorts handled allegations about a “decades-long pattern” of sexual harrasment by its founder and former CEO Steve Wynn.
Mr. Wynn quit the casino and hospitality company in February, following the publication of an article by the Wall Street Journal detailing sexual misconduct and sexual harassment allegations leveled against him by former and current Wynn Resorts employees.
The Massachusetts Gaming Commission launched a probe into those allegations, whether the company had any previous knowledge of those, and how it responded to them. The gaming regulator’s investigation also aimed to determine whether Wynn Resorts was still suitable to operate a $2.5-plus-billion integrated resort with a casino in the Greater Boston area. The property has entered final stages of development along the Mystic River in the city of Everett and is slated to open doors in mid-2019.
Back in November, Mr. Wynn filed a legal complaint to the Clark County District Court against MassGaming, the regulator’s chief investigator, Karen Wells, and Wynn Resorts, arguing that the gaming and hospitality company has communicated information that violated his attorney-client priviliges to the Massachusetts gambling regulator over the course of the latter’s probe.
MassGaming planned to release a report on its probe and to rule on Wynn Resorts’ suitability to operate the Encore Boston Harbor integrated resort in early December. However, Clark County District Court Judge Elizabeth Gonzalez issued last month a temporary ban on the reveal of the results from the investigation, saying that she needed all involved parties to provide comments and additional evidence. The judge set a January 4 hearing on the matter.
Ban Gets Extension
After more than two hours of hearing arguments from the involved parties, Judge Gonzalez decided to stand firm on her decision to temporarily block the release of the MassGaming report. She said Friday that she was “limiting what the state of Massachusetts can rely upon, share or utilize” until she decides whether the documents obtained by the Massachusetts gaming regulator contained priviliged information.
The judge further advised attorneys for Mr. Wynn, Wynn Resorts, and the Gaming Commission to resolve their differences and keep her updated on their progress. The involved parties will have to provide a status update to Judge Gonzalez next Friday, January 11.
It is still unclear how Friday’s events will affect MassGaming’s suitability review. Commenting on the latest development in the Steve Wynn sexual harassment scandal, MassGaming spokeswoman Elaine Driscoll said yesterday that the commission “will now closely review the judge’s ruling and assess its overall impact” on the probe. Ms. Driscoll went on to say that the regulatory body remains committed to advancing the process and “identifying the appropriate next steps to expedite the completion of Wynn’s suitability review.”
Wynn Resorts said in a Friday statement that they “firmly believe that the company did nothing wrong” in working with the Massachusetts Gaming Commission over the course of its investigation and that the information communicated did not violate Mr. Wynn’s attorney-client privilege.
Mr. Wynn has denied all allegations leveled against him. Following the publication of the WSJ story, the embattled casino mogul stepped down as Chairman and Chief Executive of the Las Vegas gaming and hospitality powerhouse he had found, and moved out from his luxury Wynn Las Vegas villa duplex which he had occupied for more than a decade.
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