The recent allegations on Steven Wynn for sexual harassment resulted in the resignation of Steven Wynn from the position of the Chairman and CEO from Wynn Resorts. This ultimately affected the Share prices of Wynn Resorts and there is the high probability of suspending the gaming license of Steven Wynn by the casino regulators and there would be cancellations of the meeting bookings by the corporations. The Wall Street Journal published a report on January 27 disclosing the sexual harassment allegation details about how Wynn would exercise his power as the chairman and CEO over his employees and pressurize them to indulge in sex with him. This leads to aggression from various casino regulators based on the allegations and forced Steven Wynn to resign from the prestigious position. If Wynn fails to do so then they would exercise their subpoena power in order to conduct an in-depth investigation of these allegations and disclose more negative information which would even cost him his gaming license.
Wynn Resort is currently involved in building $2.4 billion casino resort and Carnivale-themed based park known as Paradise Park in Las Vegas. The Massachusetts Gaming Commission has conducted an investigation on these investments and there are a lot of questions and doubts rising about their prospective future after the resignation of Steven Wynn. Matt Maddox and Boone Wayson would be handling the position of CEO and non-executive chairman respectively after the news about the resignation of Steven Wynn from these positions. Matt Maddox was the former President and Boone Wayson was the CFO of Wynn Resorts. Steven Wynn currently holds 11.8 percent stake in the Wynn Resorts and the first thing investors would be considered after the resignation would be liquefying the stakes in an orderly manner to be the benefit to the Wynn Resorts and the investors. There are predictions made by various analysts about the future of the organization based on the strategic actions of the investors.
For instance, Adam Trivison of Gabelli commented that there are high chances that the company would split and have the higher probability to be sold in the market than to continue in such critical situation. Their Macau’s operational company or asset is the most profitable and revenue generating asset and contributes nearly 78 percent of the total revenue generated by Wynn Resorts as a single organization. there are predictions that they would sell out some part of their assets or probably the whole company. The major competitor eyeing to purchase the Wynn Resorts is Malaysia’s Genting Group who currently doesn’t have even a single operational asset in Macau. There are very fewer chances that the casino regulators would allow a single entity to own two operational assets in Macau.