When Steve Wynn appeared before the Massachusetts Gaming Commission in a bid for the lone eastern Massachusetts casino license, he acknowledged legalized gambling is a "unique" business. Watch video
When Steve Wynn appeared before the Massachusetts Gaming Commission in a bid for the lone eastern Massachusetts casino license, he acknowledged legalized gambling is a "unique" business.
"I mentioned earlier in a conversation with this commission, and I've done so publicly that we in this industry need to prove that we know the difference between right and wrong, and we know how to conduct our business ethically," he told the five-member commission.
Four years after that personal appearance, as his company builds a $2.4 billion casino just outside of Boston, commissioners are grappling with what to do after a Wall Street Journal report on various people alleging a "decades-long pattern of sexual misconduct by Mr. Wynn."
The commission's investigators are now conducting a review of whether Wynn is suitable to run a Massachusetts casino. A $7.5 million settlement reported in the Wall Street Journal report was actively kept from the Gaming Commission, its head investigator said, during the original suitability review in 2013.
Gambling regulators in Nevada, where Wynn has casinos, are conducting their own review, according to the Associated Press.
Steve Wynn settlement was actively concealed from Massachusetts Gaming Commission, investigators say
Under the 2011 Massachusetts casino law, the Gaming Commission has the right to revoke or suspend the casino license, as well as level fines against the company.
The Wynn Boston Harbor casino so far remains on track to open in June 2019.
Wynn, who in the aftermath of the report stepped down as finance chair of the Republican National Committee, has criticized the misconduct allegations and told the Wall Street Journal, in part, "We find ourselves in a world where people can make allegations, regardless of truth."
Karen Wells, the Gaming Commission's chief investigator, told commissioners it was "impossible" to come up with a timeline for the review, since it will depend on what they find as they look.
The commission's original suitability review, conducted in 2013, did not uncover the alleged sexual misconduct. Those types of reviews in the gambling world typically focus on ties to criminal associates, organized crime or corruption.
Wells told the commission that her bureau plans to be "mindful that our role is not to conduct a criminal investigation into sexual assault."
Her bureau's regulatory review will focus on the suitability of Steve Wynn and a look at any corporate action or lack thereof. "The questions - who knew what, when, and what if anything did he or she do about it?" Wells said in her statement to the commission.
Wells said she'll also be looking at how Wynn Resorts handles the allegations and how the allegations impact the financial stability of the company.
MGC's Director of IEB notes that the Wynn regulatory review will consist of the following 4 components: pic.twitter.com/9k1w7ikUUE
-- MA Gaming Commission (@MassGamingComm) January 31, 2018
Gaming Commission chairman Stephen Crosby told Wells she'll likely face some pressure from some of the people she speaks with in the course of the investigation to keep things private.
Crosby said the commission won't be happy with attempts to keep things "off the record."
"The people of Massachusetts have the right to know what the hell happened here," he said.
Will Wynn Boston Harbor drop the Wynn name as casino mogul faces sexual misconduct allegations?
Material from Associated Press was used in this report.