Wynn Resorts will likely keep its gaming license but be forced to pay another hefty fine following its three-day hearing with the Massachusetts Gaming Commission (MGC), according to boutique investment bank Union Gaming.
In a note published shortly before the adjudicatory hearing kicked off in Boston on Tuesday, analyst John DeCree predicted a resolution to the MGC’s investigation would come sometime within the next week, adding “based on the information available, we expect Wynn Resorts to maintain its license but get hit with a substantial fine and be subjected to regulatory probation and additional oversight.”
DeCree said the fine would likely be greater than the US$20 million penalty imposed on Wynn Resorts by the Nevada Gaming Commission in February.
The hearing, which aims to determine Wynn Resorts’ suitability to hold a state gaming license ahead of the planned opening of its US$2.6 billion Encore Boston Harbor in June, was preceded on Tuesday by the release of the MGC’s 199-page report into sexual assault allegations against founder Steve Wynn last year.
Among the report’s key findings is that key executives failed to disclose and in some cases “were part of affirmative efforts to conceal allegations against Mr Wynn that came to their attention.”
The worst-case scenario for Wynn Resorts would be the loss of its Massachusetts gaming license which would force it to sell Encore Boston Harbor before opening, but DeCree said that scenario seems unlikely.
“Our view for a favorable outcome for Wynn Resorts is largely predicated on the company’s swift and drastic response after the allegations against … Steve Wynn were made public,” he said.
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