What are the ramifications of the accusations against Wynn?
Other than Donald Trump, no name has been more synonymous with the casino/hotel industry than Steve Wynn. A pioneer in the growth of both Las Vegas and Atlantic City, Wynn brought a new era of luxury casinos as well as pushing the envelope of bigger and grander. With the building of the Mirage, a new standard was set, and every hotel/casino built thereafter on the Strip, was trying to match or outdo the Mirage in luxury and size.
Unfortunately, in the past week, Wynn’s name and his company Wynn Resorts Ltd. have taken a beating for what has become headline news in the past year, and that is sexual assault allegations against powerful businessmen as well as celebrities of all stripes. Steve Wynn is just the latest, although these accusations will ripple through not only Wynn’s personal life, but through his business ventures as well.
Guilty or not of these current accusations, he did settle a previous lawsuit for $7.5 million. As of February 1, 2018, the scandal has already started to take a tole on Wynn both personally and on his company, Wynn Resorts Ltd, which he is the CEO. The University of Iowa announced plans that they will remove Wynn’s name from the Stephen A. Wynn Institute for Vision Research. Wynn who has the disease retinitis pigmentos donated $25 million back in 2013 for research of this condition and others contributing to the loss of sight.
With regards to Wynn’s business ventures, the stock of Wynn Resorts Ltd. has plummeted to $165.59 on January 31 from its price on January 27 of $200.75 when the Wall Street Journal story broke. Wynn Resorts is currently involved in a $2.4 billion project in Massachusetts which is now coming under more scrutiny and will create unwanted attention. The stakes are high for both Wynn Resorts and the state of Massachusetts as well as those looking for employment at the resort.
Will Wynn be ousted as CEO of Wynn Resorts Ltd.?
As I write this article, I have no doubt that the decision will be made by the end of the working week on February 2, 2018. Although with Wynn being the CEO and “brand” behind the company, when it comes to a public company, the shareholders best interest is where the fiduciary responsibility lies. With the stock losing close to 18% of its value since the scandal broke, changes will be made, and Mr. Wynn might not like the outcome of those changes.