$20M fine ends Wynn Resorts' sexual misconduct case

Wynn Resorts pays $20M fine over Steve Wynn misconduct scandal

Wynn Resorts has agreed to pay a $20 million fine to settle claims over its handling of sexual misconduct allegations against former CEO Steve Wynn. The penalty, the largest ever imposed on a single casino firm in Nevada, follows a regulatory review into the company's past failures.

The gaming operator admitted it did not properly address at least seven accusations of impropriety against Wynn dating back to 2005. Nevada regulators have now closed their investigation, marking a turning point for the firm under new leadership. The settlement comes after Steve Wynn resigned in February 2018 amid multiple allegations of sexual misconduct. His departure led to the appointment of Matt Maddox as the new CEO and president of Wynn Resorts. Since then, the company has introduced sweeping reforms, including a revised code of conduct, mandatory annual training on preventing sexual harassment, and an independent ombudsperson to handle complaints.

A three-tiered escalation process for reporting incidents was also established. According to the company, no cases of sexual harassment have been reported since 2019—a stark contrast to the allegations that forced Wynn's exit. Regulators noted these changes as evidence of a 'transformation' and a 'refreshed culture' within the organisation.

In addition to policy overhauls, Wynn Resorts appointed three female directors to its board following Wynn's resignation. The $20 million fine, equivalent to about 4.2% of the company's 2018 net profit, was described by the Nevada Gaming Commission as a necessary penalty for past failures. The company has since expressed gratitude for the regulators' confidence in its current leadership.

Looking ahead, Wynn Resorts stated its intention to 'grow and prosper' under Maddox's direction. The completion of the review removes a significant regulatory hurdle, allowing the firm to focus on its future operations. The fine and reforms bring an end to a lengthy investigation into Wynn Resorts' handling of misconduct claims. With new leadership, updated policies, and no recent reports of harassment, the company has met the conditions set by Nevada regulators. The settlement now allows the firm to move forward under stricter oversight and a restructured governance model.