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Gambling Regulators Authorize Settlement to End Wynn Lawsuit

Written by:
Associated Press
Published on:
Feb/20/2019

BOSTON (AP) - A settlement is pending in casino mogul Steve Wynn's lawsuit seeking to block the release of Massachusetts' investigation into allegations of sexual assault against him.


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The Massachusetts Gaming Commission voted Wednesday to authorize its legal counsel to finalize an agreement with Wynn to dismiss his lawsuit filed in Clark County District Court in Las Vegas, Nevada.

Specific terms weren't disclosed, but the commission said the deal would guarantee access to the report its investigators have compiled but have been unable to release.

That report, the commission has said, is critical as it determines whether Wynn Resorts — the company Steve Wynn founded but stepped away from last year — is still suitable to hold a state casino license in light of the misconduct allegations.

Last month, Clark County District Court Judge Elizabeth Gonzalez ruled the commission's investigation, which it had hoped to release this summer, would remain secret until she could determine whether it contains confidential information or material protected by attorney-client privilege, as Wynn's personal lawyers contend.

The Massachusetts Gaming Commission said in a statement after Wednesday's vote that reaching a settlement eliminates the uncertainty of protracted litigation, allows it to review the investigative report and proceed with a public hearing on the future of Encore Boston Harbor.

The more than $2 billion waterfront resort under construction in the Boston suburb of Everett is slated to open in June, but was dealt a significant setback after the sexual misconduct revelations became public last January.

The commission launched an inquiry into how the company handled reports its founder engaged in sexual misconduct with female employees, saying that its findings could have consequences for its license.

Among the questions for Massachusetts investigators was whether information about a $7.5 million settlement with one of Wynn's accusers was deliberately withheld during an initial background check as regulators were considering which company would win the lucrative Boston-area casino license back in 2014.

Connecticut-based Mohegan Sun, which also vied for the license, has filed lawsuits in state and federal court over the years seeking to have the decision overturned.

Wynn, who has denied the sexual misconduct allegations, didn't immediately comment through his lawyers.

The company said in a statement it looks forward to a public hearing in Massachusetts.

Last month, it reached a settlement with the Nevada Gaming Control Board after the board found that former company executives failed on multiple occasions to investigate the sexual misconduct claims against Steve Wynn.

That settlement did not revoke or limit the Nevada company's gambling license but requires it to pay a fine to be set later.

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