Nevada Regulators Mull Appeal in Wynn Case

Steve Wynn (l.) has no interest in returning to the gaming industry in the aftermath of his resignation over allegations of sexual misconduct. But the Nevada Gaming Control Board tried to find him unsuitable for a license. But a judge said the agency had no authority for such a finding. An appeal might follow.

Nevada Regulators Mull Appeal in Wynn Case

In February 2018, Steve Wynn resigned as Chairman and CEO of Wynn Resorts a week after a Wall Street Journal article uncovered years of sexual misconduct and harassment allegations, which the casino executive has denied. He also sold his interest in the company.

Though Wynn has no role in any casino company, the Nevada Gaming Control Board tried to find him unsuitable to hold a casino license. But Clark County District Judge Adriana Escobar on November 19 agreed with arguments brought by Wynn’s attorneys that the former mogul’s resignation removed the Nevada regulators oversight.

In a statement after the ruling, the board said it would review the substance of the court’s decision and consult with its attorneys on whether to file an appeal.

“Over many months, the district court received extensive briefings and oral arguments which produced an exceedingly well-reasoned decision in favor of Mr. Wynn,” said Las Vegas lawyer Don Campbell. “Accordingly, we have every confidence that we will be able to conclusively demonstrate the continuing and compelling merit of our position should Nevada gaming authorities elect to pursue the matter further in yet another forum.”

The board filed a complaint in October 2019 that sought to label Wynn “unsuitable to be associated with a gaming enterprise or the gaming industry as a whole.” Two months later, the Nevada Gaming Commission voted it had the authority and jurisdiction to rule in the matter.

In her ruling, Escobar wrote, “Respondents fail to provide any authority supporting their jurisdiction over a person no longer involved in Nevada’s gaming industry in any capacity. Importantly, respondents fail to support their position that they have jurisdiction over a person with no intent to be involved in Nevada’s gaming industry in the future. Why? There is none.”

Campbell said he expected the Nevada Supreme Court to decide the issue. But Wynn “has no intention (in Nevada) or anywhere else in the world to re-enter gaming. None.”

Wynn Resorts paid a $20 million fine in February 2019—the largest in Nevada history—to the Gaming Commission to settle a 10-count complaint and/or investigate” numerous allegations of sexual assault, sexual harassment and sexual misconduct by Wynn. Massachusetts gaming regulators fined Wynn Resorts $35 million three months later.