Steve Wynn claimed that "negative publicity" was making his continued participation as the head of Wynn Resorts untenable.
He resigned as the finance chairman of the U.S. Republican Party's fundraising arm, the Republican National Committee, in January. The company has market cap of $18.06 billion. In order to turn the situation around, the management of Wynn Resorts has appointed Matt Maddox to the position of CEO. The fate of the two new hotels he's proposed for Las Vegas may face scrutiny.
Wynn Resorts without Wynn: What Does it Mean? Among his most famous properties are the Bellagio, with its musical-fountain show, and the Mirage, with its streetside volcano and resident Cirque du Soleil show. These allegations gained widespread attention after an investigative report published by the Wall Street Journal cited dozens of sources and detailed numerous allegations against Steve Wynn.
Wynn Resorts operates five properties in Las Vegas and Macau, and is developing a $2.4 billion casino now under construction near Boston. The newspaper spoke to one former server who said she felt Wynn forced her to have sex with her to keep her job.
What neither the board nor Steve Wynn addressed is if there was pressure from regulators in Las Vegas, Macau, or Boston to oust him.
Bernstein said in its first Wednesday note on the Wynn group's shake up that it was "less bullish" on Wynn Macau in the near term, given the uncertainties surrounding "further changes at the company management" and the "implications of the pending litigation in Nevada with respect to Wynn Resorts".
"The bureau reiterates that the Macau SAR is concerned about the eligibility of the casino gaming concessionaires' major shareholders and directors and the principal employees in casinos, and the requirements will be strictly enforced". The Macau government has said little so far about what may be required for renewal. The business had revenue of $1.69 billion during the quarter, compared to the consensus estimate of $1.56 billion. That case is expected to go to trial in April.
A spokeswoman for Republican Gov. Charlie Baker says he believes it was the "right decision" for Wynn to end his relationship with the company on Tuesday, in light of the "disturbing allegations" against him. Stifel Nicolaus boosted their target price on shares of Wynn Resorts from $134.00 to $153.00 and gave the company a "hold" rating in a research report on Friday, October 27th. Also, his behaviour will be observed by regulators.