Wynn Resorts was fined $20 million by the Nevada Gaming Commission for its failure to investigate sexual misconduct claims made by multiple women against its founder, Steve Wynn. It was by far the highest fine ever levied by the regulatory agency.
The commission's previous high bar was a $5.5 million fine against CG Technology in 2014. The $20 million penalty amounts to less than 5% of Wynn's 2018 net income.
As the Associated Press reported, commission chairman Tony Alamo said $20 million "makes it clear to all licensees that this culture cannot be tolerated" without dealing Wynn Resorts an insurmountable blow. "It needs to move needles here," Alamo said. "It needs to ring across the entire country."
While the fine will not directly impact Steve Wynn, the former CEO who resigned a year ago and sold his stake in the company, it will punish the company, which is now helmed by longtime Wynn executive Matt Maddox.
Maddox assumed the top role immediately following Wynn's departure and promptly got to work stabilizing the company, bringing in new investors and board members and jettisoning a grand lagoon project in favor of reviving the Wynn Golf Club.