Wynn allegations continue to affect business

After Massachussetts decided to review a casino project, Wynn’s business could tumble worldwide.

US.- Sex misconduct allegations against Steve Wynn are having a major impact in Wynn Resorts’ performance as shares have already dropped 8.5 per cent and several regulators have decided to take a deeper look into the company’s business. After the Massachusetts Gaming Commission announced it will review the Wynn Boston Harbor project, its peers in Nevada and Macau are set to assess its relationships with the company, and even Japan could reject its bid for an integrated resort.

Despite rumours, UBS analyst Robin Fairley believes that regulators won’t take actions that might hurt the rest of the company’s shareholders, as Wynn only owns 12 per cent of its stock. “Allegations and subsequent investigations will likely cap near-term upside in the stock,” he said.

While regulators take a deeper look into the whole situation, Wynn Resorts’ board has formed an independent committee led by former Nevada Gaming Commission member Patricia Mulroy. “The board is deeply committed to ensuring the safety and well-being of all of the company’s employees and to operating with the highest ethical standards,” said its members.

“The idea that I ever assaulted any woman is preposterous (…) We find ourselves in a world where people can make allegations, regardless of the truth, and a person is left with the choice of weathering insulting publicity or engaging in multi-year lawsuits. It is deplorable for anyone to find themselves in this situation,” Steve Wynn said regarding the allegations.