Steve Wynn’s troubles are far from over, despite all of his efforts to minimise his sexual misconduct allegations. The former casino magnate is facing multiple lawsuits from former employees, and an investigation by the Massachusetts Gaming Commission (MGC). Wynn resigned as CEO in February from Wynn Resorts, but the MGC claim that Wynn’s shares make his behaviour a major component of the company.
Part of the problem is that multiple lawsuits claim that Wynn Resorts’ board of directors knew about his misconduct. As such, his controlling interest in the company puts all of their gaming licenses under scrutiny. If the MGC investigation finds proof of this, the company could lose their license for their unfinished resort in Boston. More so, their Nevada and Macau gaming licenses could also be in trouble for the same reason.
Federal Ruling ties up Wynn’s Shares
Last Friday, a Nevada judge ruled against Steve Wynn’s motion to void an agreement between his ex-wife and himself. Their 2010 divorce settlement stipulates that neither party may sell their shares. The judge further said that Wynn’s shares were too closely mixed up with an existing lawsuit between his ex-wife, himself and a Japanese billionaire, Kazuo Okada.
Mr Okada and Mrs Wynn were both co-founders of Wynn Resorts, but they were ousted in 2012. At the time, Mr Wynn accused Okada of bribing Philippine officials in a bid for a license. However, Okada denies these claims, despite being removed from the board. He was also forced to sell his 20% stake in the company. The resulting lawsuit is a bid from Mrs Wynn and Okada to regain their shares.
Gaming License Troubles
Until the long-running lawsuit is resolved, Wynn’s shares in the company cannot be sold. This means that the gaming firm will be in hot water with regulators for the foreseeable future. In Massachusetts, gambling laws state that licensed companies must remove ‘unsuitable shareholders’ from any ‘voting securities’ to keep their license. Unfortunately, the Nevada ruling makes this impossible. Keeping visiting our site for updates on this story.