Wynn Resorts After Steve Wynn

Wynn Resorts CEO and iconic Vegas figure Steve Wynn is out as the top man at his eponymous company today as the fallout from last-week’s sexual misconduct allegations continue to resonate throughout the gambling industry.

Wynn Resorts, Limited (WYNN) owns and operates Wynn Las Vegas and Encore in Las Vegas, Nevada as well as Wynn Macau and the Wynn Palace located in the Special Administrative Region of Macau in the People’s Republic of China. The Company holds more Forbes Travel Guide Five Stars than any other independent hotel company in the world and has been led by Chairman of the Board and Chief Executive Officer, Mr. Stephen A. Wynn, who possesses more than 45 years of development experience of casino resorts. Wynn Resorts, Limited is traded on the Nasdaq Global Select Market and is part of the S&P 500. Wynn Resorts is currently constructing Wynn Boston Harbor located in Everett, Massachusetts.

Wynn, who has denied the allegations and claimed they are the fault of an ex-wife involved in litigation over company stock connected to her former board position, resigned last night and in a statement claimed that he had “reached the conclusion I cannot continue to be effective in my current roles” due to “an avalanche of negative publicity.”

That is just a bit of an understatement given the Wall Street Journal’s brutal expose last week which detailed numerous instances of sexual harassment, abuse, and–in one instance–assault. Included in the details of that article was a $7.5 million settlement paid by Wynn to a casino employee who alleged that Wynn forced her to have sex with him against her will.

It remains to be seen how much more fallout will occur. Wynn resigned from his position as Finance Chairman of the Republican National Committee last week. Wynn has also resigned as the chairman and CEO of the Wynn Macau company. The firm also faces investigations from state regulators in Massachusetts and Nevada.

Known for building top-notch strip properties such as the Mirage, Treasure Island, and the crown jewel, Bellagio, Wynn was a legend in Las Vegas. However, the sort of behavior detailed by the WSJ is beyond the pale–even for a 76-year-old CEO of the old guard.

It will take a while to see what sort of financial impact–if any–this will have on Wynn Resorts’ bottom line. It was reported that Wynn paid off the woman he is alleged to have assaulted with his own funds via a private LLC. It remains to be seen if other victims will come forward and if the casinos will be forced to pay additional settlements.