By Josh Resnek
One of the sticking points that has so far prevented Wynn Resorts CEO Matt Maddox from paying the fines that are due on May 31 are highlighted beautifully in the Massachusetts Gaming Commission’s seeking bids for an independent monitor to watch over Maddox and what he does.
The MGC is right now advertising for an independent monitor.
Without an independent monitor, the casino will not open.
A central finding of the commission’s investigation stated: “Over a course of years, a limited group of executives and employees in positions of authority at the Company, including in the legal division, were aware of certain allegations of sexual misconduct against Mr. Wynn involving employees, but they disregarded Company policies when it came to handling those allegations. The investigation also shows that in some instances particular Company executives, with assistance of outside counsel, were part of affirmative efforts to conceal allegations against Mr. Wynn. Their efforts at secrecy made it exceedingly difficult, if not impossible, for gaming regulators to detect potentially derogatory information through typical regulatory means.”
This is why as part of the MGC’s decision, Maddox must be followed around for the next 3 years.
If Maddox chooses not to do this, then Wynn loses its suitability rating.
Wynn’s lawyers are apparently trying to determine exactly what the independent monitor will be required to do and what exactly his or her responsibilities will be.
There remains a sliver of doubt about whether or not Wynn Resorts will pay the fines and get on with it, including the independent monitor.
Some industry sources claim Maddox will have to accept the MGC’s decision with its “crippling” insistence on naming an independent monitor.
“This will be the most important person Maddox has to work with. It is crucial to him that whomever is hired must be willing to be his friend and colleague rather than a watchdog and a whistleblower,” said a source connected with the industry in this area.
“Do you have any idea how hard it is to report to someone else about what you do when you head a $25 billion corporations? No one wants to do this, believe me,” he added.
The same source said it is believed that Wynn Resorts loses leverage in the licensing process in Macau if they accept the MGC’s determinations, which includes paying the fines.
“They pay the fines and they admit to wrongdoing by doing so. The Chinese officials in Macau are always looking for leverage to increase fees. This will
be such a case – and it could get very expensive for Wynn Resorts in Macau,” he added.
Wynn Resorts Macau operations are its most profitable. It is the engine that powers the corporation. “They must be very careful about what they do – but in the end – the fines will be paid, the independent monitor will be hired and the licensing in Macau will require a bit more business savvy,” added the source.
“There can be no other reasonable outcome.”
Wynn Resorts and Maddox must pay their fines by May 31.