Steve Wynn Steps Down as CEO of Wynn Resorts Amid Misconduct Allegations


A vacant lot across from Wynn hotel-casino photographed on Thursday, Dec. 14, 2017, in Las Vegas.

"I have reached the conclusion I can not continue to be effective in my current roles", Wynn said in a statement, announcing his resignation as chair and CEO. Wynn has denied all the allegations against him, calling them preposterous.

Arrowsmith paraphrased Wynn's words, recalling Wynn saying, "Some of you have let yourselves have fat asses and you're going to lose your fat asses or I'm going to transfer you to departments that it will not matter what uniforms you wear, because you no longer compliment my cocktail uniform".

Casino mogul Steve Wynn has resigned as chairman and CEO at Wynn Resorts amid sexual misconduct allegations.

Wynn Resorts operates the Wynn Las Vegas, Wynn Macau Resort, the Encore at Wynn Las Vegas, the Encore at Wynn Macau and the Wynn Palace in Macau.

Trading of Wynn Macau stock was suspended on the Hong Kong Stock Exchange in anticipation of a snap market reaction.

As Jefferies analyst David Katz said in a research note: "Elvis has left the building".

Wynn concluded with a message to the company's employees.

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Wynn, who developed The Mirage, Treasure Island (now TI) and the Bellagio before launching Wynn Resorts, built the Wynn Las Vegas and Encore through his namesake company.

Commission Chairman Stephen Crosby, participating from a family vacation, said through a remote connection that a "central question" for investigators will be what did the Wynn board of directors know about the allegations against Wynn, and when did they know it.

Wynn is also facing investigations by gambling regulators in Nevada and MA, where the company is building a $2.4 billion casino near Boston.

Wynn previously resigned as finance chairman of the Republican National Committee a day after the reports of the allegations were published. In fact, more than 40 percent of all Wynn Las Vegas management are women; the highest in the gaming industry.

The company said it was appointing Mr Matt Maddox, its president since 2013, as chief executive, effective immediately.

Wynn Resorts is now constructing Wynn Boston Harbor located in Everett, Massachusetts. "We do not see the issues [related to Mr Wynn's resignation]... having any material impact on customer demand for Wynn Macau products and services (unlike in the USA, where Wynn's brand has already been tarnished by the allegations)", Sanford C. Bernstein analysts Vitaly Umansky, Zhen Gong and Cathy Huang wrote in a Wednesday note.

"We don't want to downplay his [Mr Wynn's] importance to the group's strategic decision and vision, but we see limited impact on Wynn Macau's fundamentals... we don't expect negative impact on its patronage, as Wynn Macau doesn't have MICE or corporate events exposure to begin with (unlike Wynn Resorts), while gambling patrons are unlikely to be affected by such reputational issues", JP Morgan's Mr Kim wrote.

The commission's Investigations and Enforcement Bureau Director Karen Wells told commission members last week that counsel for the casino company told her the settlement was withheld from regulators on advice of counsel, and that the settlement was entered into privately "to keep it from the public domain".