The Massachusetts Gaming Commission said Wednesday that information about sexual misconduct allegations against Steve Wynn and a multi-million dollar settlement related to those allegations were undisclosed when it reviewed the casino magnate's suitability for a casino license in the state.
In a special meeting Wednesday, the Gaming Commission heard from Karen Wells, the director of its Investigations and Enforcement Bureau, who said she confirmed that Wynn did pay a $7.5 million settlement to a manicurist who alleged she'd been sexually assaulted by Wynn. That settlement was originally reported last week by the Wall Street Journal.
The settlement was not uncovered when Wynn was initially given a license to open a casino in Everett.
"What we have discovered is that ... there were steps taken to keep it private, there were no court records at the time for investigators to discover, and that it was not disclosed by any qualifier," Wells told the commissioners. "Whether or not that was appropriate will be looked at by this investigation.”
Wells said the Gaming Commission will also consider how the company now responds to the allegations.
"The stakes are enormous and many lives are involved, from the lives of the women allegedly abused, to the lives of men and women in Everett now building the project, to the senior executives and board members of Wynn Resorts," said Gaming Commission Chairman Steve Crosby. "We will get this right and we will get this right quickly."
While the commission’s regulatory investigation is conducted, Crosby said those working in Everett to build the casino should "feel fine" carrying on with their jobs.
"This is not the first time there have been allegations of misconduct against major players in the casino business," he said. "We will resolve this one way or another."
Crosby said the commission needs to determine what the facts are. “Issue one will be this payment, this settlement, and all the allegations surrounding that,” Crosby said. “But concurrently, is how the company responds to that. That is a measure of the suitability of the company and the principals in the company.”
The investigation will also look into what impact this scandal is having on the financial stability of the company.
Wynn has denied the allegations against him and called claims of assault "preposterous" and motivated by his ex-wife as part of an ongoing divorce lawsuit. Over the weekend, he stepped down as finance chair of the Republican National Committee. The Wynn Resorts board of directors and the Nevada Gaming Control Board have also launched their own investigations.
No one from Wynn Resorts spoke at Wednesday's meeting, but Wynn's words were present. Commissioner Lloyd MacDonald quoted Wynn's own testimony before the commission, given December 2016.
“We in this industry have sort of a presumption that we need to prove that we know the difference between right and wrong, and we know how to conduct our business ethically,” Wynn said at the time. He added that that expectation comes from the “unsavory and colorful” history of gaming.
“For the past 45 years I've dealt with that as best I can, and most importantly, learned to be anticipatory ... in understanding what would be expected of us, and the kinds of things that would occur after the fact in questioning about our behavior at earlier times,” Wynn testified in 2016.
The Gaming Commission has a range of options once its investigation is completed. “We have unlimited authority to do virtually anything that we want, once we know what the facts are,” Crosby told reporters after the meeting.
The commission's actions will depend in part on what Wynn Resorts now does. The company could choose to somehow separate themselves from the man at the top, like the Weinstein Company did after sexual assault allegations against founder Harvey Weinstein. If the commission were to revoke the gaming license, that could open up a costly lawsuit filed by the company.
Before any final action is taken, Wynn would be entitled to have a hearing before the commission. Members of the commission stressed Wednesday that Steve Wynn and the company deserve due process, and said that's what they'll get.
The State House News Service contributed to this report.
