One of the men who paved the way for the modern Las Vegas megaresort has been banned from doing business in the state of Nevada. Casino mogul Steve Wynn reached an agreement with the Nevada Gaming Commission last week after a long legal battle following sexual misconduct allegations.
The commission began the investigation after the Wall Street Journal published allegations in 2018 of sexual harassment and assault at some of his hotels. The deal included a $10 million fine and bars him from running casinos in Nevada.
“This stipulation would bring this sordid affair to conclusion,” first assistant Nevada attorney general Craig Newby said during the hearing.
Details on the Agreement
The allegations against Wynn bring an end to a long and storied career in the casino industry. He helped foster the mega resort concept by greatly expanding the Golden Nugget in 1977. Larger projects followed beginning with the Mirage in 1989, which cost $600 million.
In 1993 Wynn built Treasure Island at a cost of $460 million, followed by the Bellagio in Vegas and Mississippi’s Beau Rivage in the late 1990s. The opulence continued with Wynn Las Vegas in 2005 at a cost $2.7 billion.
Following the sexual misconduct allegations, however, the 81-year-old sold all his shares in the company he founded. Wynn now lives in Florida and is believed to have a net worth of $3.2 billion. Nevada gaming regulators said the allegations have tarnished the image of one of the biggest players in the casino industry over the last few decades as well as the business as a whole.
“It’s a huge blemish on the industry,” Commissioner Rosa Solis-Rainey said during the hearing. “While Mr. Wynn made some incredible contributions, the nature of the allegations that were made and the history behind that … warrant at least the amount of fine that was negotiated.”
According to the Associated Press, Wynn signed a seven-page agreement that charged him with “failure to exercise discretion and sound judgment” and that this “reflected negatively on the reputation” of the state and the gaming industry. In 2019 his company was also fined $20 million.
Despite the agreement, Wynn has consistently denied the sexual misconduct allegations. His attorneys battled in Nevada courts over the last few years to stop regulators from punishing him, including appealing to the state Supreme Court, which didn’t rule in his favor.
The agreement brings a close to this chapter in the controversy and Solis-Rainey noted: “I think it’s in everybody’s best interest to move forward.”
Caesars Posts Quarterly Gains, Topping Revenue Projections
In other gaming news, Caesars Entertainment reported second quarter revenue on Tuesday that included a profit of $920 million compared to a loss of $123 million for the same quarter in 2022. The company runs casino resorts around the country including numerous properties in Las Vegas such as Caesars Palace, Flamingo, and Planet Hollywood.
The gains come at a time when travelers are heading back to casinos around the country in droves. According to the Las Vegas Convention and Visitors Authority, in June the number of visitors to Las Vegas reached 3.4 million, a 3% increase from the same month in 2022. Hotel occupancy reached 86%, an increase of almost 3% from June 2022.
Caesars chalked up the gains to continued demand from customers at the Las Vegas properties as well as other casinos. The company produced a revenue of $2.9 billion topping some analysts’ projections of $2.87 billion.
The numbers were tempered by higher costs for food and beverage and hotel operations as well as interest expenses. Caesars officials saw the operational growth, including at casinos outside Las Vegas, as a positive sign that the company was moving in the right direction. CEO Tom Reeg also noted that Caesars’ online gaming and sports betting arm also performed well.
“The second quarter of 2023 reflected continued strength in our business,” Reeg said. “Demand remains strong in both Las Vegas and our regional markets. Caesars Digital posted its first quarter of positive adjusted EBITDA since our rebranding to Caesars Sportsbook in the third quarter of 2021. Our capital investments are generating stronger than expected returns based on recent new property openings.”
The Caesars Digital numbers included adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $11 million compared to a loss of $69 million for the second quarter of 2022. Other highlights from the report included:
- Net revenues of $2.9 billion versus $2.8 billion for second quarter 2022.
- Net income of $920 million compared to net loss of $123 million for second quarter 2022.
- Same-store adjusted EBITDA of $1 billion versus $978 million for second quarter 2022.
- Same-store adjusted EBITDA, excluding Caesars Digital, of $996 million versus $1 billion for second quarter 2022.
