What’s Next?
By Josh Resnek
Fallen and disgraced casino magnate Steven Wynn sold all of his shares in the company he founded late last week in a move anticipated by industry experts and predicted by the Leader Herald in our March 22 edition.
The sale of all his shares netted the serial sexual harasser almost $2.5 billion dollars when all is said and done.
Now he has nothing to do with Wynn Resorts, which presents a dilemma for the company as well as for the Massachusetts Gaming Commission. The Gaming Commission has taken this stunning news in stride.
In its official notification for the March 29 meeting, the Gaming Commission made no notice of the sale by Wynn of his stake in the company.
Rather, it announced that representatives from Wynn Boston Harbor will present a quarterly report and workforce development plan.
The Commission announced it is also expected to vote on a number of issues related to horse racing.
Gaming industry expert Chip Tuttle, the President of Suffolk Downs, said Wynn’s sale of his stock presents the Gaming Commission with challenges.
“They now have to investigate Galaxy (the casino giant that bought Wynn’s stock) now that they own more than 5% of the stock in the company,” he told the Leader Herald.
“Also, they have to decide if they let Matthew Maddox stay on,” he said.
Maddox replaced Wynn. Maddox, however, it was noted in numerous newspaper reports, had knowledge about Wynn’s paternity suit and the payment of $7.5 million in hush money when Wynn Resorts led their application with the Gaming Commission and failed to report this.
This presumably effects his suitability to lead the company, according to Commission rules, regulations and laws.
“Maddox misled the MGC but I don’t think the MGC has the guts to pull the license,” Tuttle suggested.
“My guess is they let Maddox stay and declare victory on the fact that Steve Wynn is totally out. But then, this company (without Wynn) is a very different company from the one that won the license based on the grand deception, suitability,” he said.
The mayor of Everett, in a taped dissertation about the issues facing him and the city in this brave new world, failed to acknowledge Wynn’s sexual harassment difficulties. He also said, rather inexplicably, he hoped the same corporation (Wynn Resorts) would own the casino.
He expressed worries about the changing situation and its effect on the outcome of the project.
The Leader Herald reported last week that billionaire casino owner and media giant Sheldon Adelson might be considering a purchase of Wynn Resorts.
Genting Group was also reported to be interested.