The scandalous claims which shook Wynn Resorts empire and its Chief Executive Officer Steve Wynn seem to have escalated quickly into real consequences, as it became known that the casino mogul filed his resignation letter this Tuesday. Amid the whirlpool of accusations of sexual misconduct and the avalanche of shareholders who opted for stepping down from his position the company, Mr. Wynn has mad the decision to make his way out of the financial empire for good.
Experts in the field qualify the scandal as one of the largest outbreaks of misconduct allegations in the industry for quite some time now. The timing of the situation coincides with the widely-known Me Too movement which seems to propel the collective wave of discontent among the employees of Wynn Resorts which have been allegedly affected by the behavior of Steve Wynn. It could be recalled that the last days of January saw the public announcement of numerous allegations of sexual misconduct by employees of the gambling developer.
The information was reported by Macau’s gambling regulator which then resulted in a wave of investigations into the business of Mr. Wynn which took the field by a storm. It is not a secret to anyone that the Gaming Control Board of Nevada is one of the most efficient regulators in the world, and following the allegations surfaced, it commenced to investigate in depth the operation of the gambling developer. This put even more pressure on the already tense situation and it led to the resignation of the leading figure.
Aftermath of the Misconduct Allegations
In the official announcement, the company employees expressed their collective feeling of discontent with the way the situation turned out and they point out that Mr. Wynn is a name which has paved the way of contemporary gambling industry on a global level and under his supervision Wynn became a leading empire in the field. Steve Wynn himself also came out with a statement which expressed his position regarding the negative publicity swirling around the allegations.
He stated that all the damages which the brand is suffering at the moment are too much and it will be best if he steps away from his executive role in the company. According to him, the environment is “one in which a rush to judgment takes precedence over everything else, including the facts” and this is what prompted his decision to resign from the leading position at Wynn Resorts. Shortly after the announcement of the gambling regulator of Macau, he filed his resignation as the Republican National Committee finance chair.
It should be noted, that Mr. Wynn claims that all allegations are false. Ever since the first days of the scandal, the stock price of the company has been dropping lower, resulting in the gap between $200.60 on 25th January and the most recent $163.22 on Tuesday. In order to turn the situation around, the management of Wynn Resorts has appointed Matt Maddox to the position of CEO. Mr. Maddox has been on a leading position in the company since 2013.