After months of back and forth with his ex-wife and the state of Nevada, Steve Wynn is finally allowed to sell his shares in his company. The ruling by a Clark County judge dissolved a divorce settlement between Wynn and his ex-wife Elaine. As part of their 2010 divorce, a shareholder agreement prevented either party from selling their shares. On Friday, the former casino magnate sold his 12% stake in the company as a result of the ruling.
At least 4.9% of his shares will be sold to a Macau rival, Galaxy Entertainment worth an estimated US$1 billion (CA$1.29 billion). The retired casino mogul resigned as chairman and CEO of his namesake company following a sexual misconduct scandal. In late January, a Wall Street Journal article was published, accusing Wynn of harassing his employees for decades. This article sparked several investigations in the jurisdictions of Nevada, Macau and Massachusetts into his behaviour.
Wynn Boston Harbour License
Wynn Resorts is currently building a multi-billion dollar resort near Boston in Massachusetts. However, their gaming license has been in question since they won the bid for the resort. Once the news broke about the casino titan, state regulators launched an investigation. The casino operator was encouraged to remove Wynn from their interests.
If the Nevada judge hadn’t ruled to dissolve his divorce agreement, the project could grind to a halt. As such, the development is still under scrutiny for the time being. On a positive note, their Macau license could still survive the aftermath of the allegations against the former CEO. Galaxy’s investment could help the operator keep their Macau interests intact.
Further Changes Ahead
Now that Wynn is out of the picture, his ex-wife now holds the largest stake in the company. She will reportedly hold talks with the board of directors about their future dealings. This was revealed in a regulatory finding last week. On the other hand, she could decide to sell her shares as well. Time will tell if Steve Wynn’s departure and share sales will help the company stay afloat.