Wynn Resorts will keep its gambling license under the Nevada Gaming Commission settlement reached last month. The four current commissioners unanimously approved the fine.
"It's not about one man," said Commissioner Philip Pro, a former federal court judge. "It's about a failure of a corporate culture to effectively govern itself as it should."
The previous highest fine in state history was US$5.5 million in 2014 against the sports betting and mobile gambling system company now known as CG Technology. It runs sports betting operations at several Las Vegas casinos.
Chairman Tony Alamo said the amount "makes it clear to all licensees that this culture cannot be tolerated," while also letting the company "heal."
Steve Wynn himself was not part of the Wynn Resorts settlement, and neither he nor any personal representatives attended the commission hearing.
Wynn resigned as board chairman and company CEO in February 2018 following reports that several women said he harassed or assaulted them. Wynn also sold his shares in the company. He has denied all the allegations.
Wynn Resorts acknowledged in the settlement that several former board members and executives knew about but failed to investigate complaints including one that led Wynn to pay US$7.5 million in 2005 to a former salon employee who alleged he raped her and that she became pregnant as a result.
The company also failed to investigate a cocktail server's allegation that from 2005 to 2006 Wynn pressured her into a nonconsensual sexual relationship, the documents said. Wynn paid a US$975,000 private settlement to that woman and her parents, the settlement said.
"The company's initial response during this period was driven by Mr. Wynn's adamant denial of all allegations," said a Wynn Resorts statement from company spokesman Michael Weaver. It acknowledged a "short-sighted focus on initially defending Mr. Wynn, rather than reassuring employees of the company's commitment to a safe and respectful work environment."
The company points to wholesale changes in the boardroom and executive offices, including hiring a new chief executive, requiring new sexual harassment prevention training for all employees and adding a women's leadership council to promote equality in the workplace.
Wynn's name was removed from the company's Massachusetts project now called Encore Boston Harbor.
Source: GMB / CNBC