Wynn issues Maddox objections in acceptance of Massachusetts ruling

Wynn Resorts is to forego an appeal regarding a recent Massachusetts Gaming Commission investigation into how it the company handled sexual-misconduct allegations against Steve Wynn, its founder and former chief executive.

Issuing the response to ensure that its $2.6bn Encore Boston Harbor development meets its opening date of Sunday 23 June, the company did voice objections to findings concerning its CEO Matt Maddox.

In it’s report published last month the MGC said that a vote on Maddox’s suitability was split, stressing a concern that he failed to exercise the proper diligence, express the requisite level of concern and understand the magnitude of the risk.

Paying its $35.5m fine alongside the $500,000 levied against its CEO, which has been confirmed by a spokesperson on behalf of the regulator, Wynn pointed to a year-long investigation within Nevada as to why he would have come on top of any potential appeal.

Wynn commented in a media statement published in response to the recent decision: “The Nevada Gaming Control Board, under whose jurisdiction the alleged activities of our founder occurred, conducted its own year-long investigation and recently reaffirmed Matt Maddox’s good standing in Nevada, and praised him for creating a ‘paradigm shift’ and for taking ‘corrective actions that [have] been impressive.’

“We believe Matt’s leadership has been, and will continue to be, essential in our transformation from a founder-led company to an innovative global corporation. Matt has created a more diverse, inclusive and respectful workplace culture – all while maintaining focus on executing the company’s business plan.”

Adding: “The board of directors disagrees with a number of the commission’s comments and conclusions regarding Matt, and believes they are not supported by the evidence. Therefore, we would support his decision to exercise his rights and appeal the fine imposed upon him, and believe he would rightly prevail in his appeal.

“However, that appeal would delay the final conclusion of this matter, and therefore we appreciate Matt’s decision to forego an appeal in order to allow closure for the company. The company will pay the fine imposed on him and has today delivered payment of that, and the company’s fine, to the commission.”