Wynn: The settlement; Paddock explained, somewhat

We’re into Day Two of the Wynn Resorts settlement with the Nevada Gaming Control Board and some details are starting to make their way into the public discourse. Forbes enumerates the charges and they include:

• • “Employee 1 claimed that in 2005 she was sexually assaulted by Mr. Wynn and became pregnant with his child.” This led to the $7.5 million payoff that got Steve Wynn and Kim Sinatra bounced from Massachusetts.
  • “A Wynn Las Vegas cocktail waitress, Employee 2, claimed that she was pressured into sex with Mr. Wynn from 2005-2006.” Wynn execs Marc Schorr and Arte Nathan had knowledge of this — and are highly unlikely to ever work in gaming again.
  • A “cocktail waitress and flight  attendant claimed harassment by Mr. Wynn.”
  • “Employees 4, 5 and 6 detailed sexual harassment by Mr. Wynn in 2014.  Nevada Gaming noted that  ‘several executives knew’ about the  behavior …. too many to mention.”
  • A “flight attendant on Mr. Wynn’s private jet claimed sexual harassment by Mr. Wynn on flights.” Again, Sinatra knew.
  • “Employee 8  facilitated sexual relationships between cocktail servers at Wynn Las Vegas and Mr. Wynn … and certain guests at Wynn Las Vegas.” Nathan knew about this pimping. (Wynn Resorts is not contesting any of the NGCB’s findings.)
  • “In 2007, [General Counsel Kevin] Tourek received an email about a Wynn executive who ‘loves sleeping with cocktail servers.'” No follow-up.
  • Steve Wynn “did not receive proper annual training regarding the policies on sexual harassment.” Like that was gonna happen.
  • “Despite having policies that discouraged romantic relationships between executives and those who worked in their organization, it was clear that Mr. Wynn had ‘sexual relationships with Wynn Las Vegas employees/ and that his conduct was ‘unsuitable.'”

Wynn Resorts tried to get out ahead of the PR bombshell yesterday with a self-congratulatory press release that minimized the NGCB’s finding and served as preliminary spin doctoring for when the Nevada Gaming Commission issues its fine, which Wynn Resorts is clearly trying to jawbone down to a slap on the wrist and promise not to do it again, scout’s honor. The company is already getting off pretty easily, considering that a culture of sexual conduct was clearly running rampant at Wynncore. Amid the stern regulatory verbiage are several greasy squirts of flattery aimed at Wynn Resorts for merely doing the decent minimum. (They even manage to get praised for hiring Marilyn Spiegel back.)

As Forbes puts it, “Where were these victims to get any sort of justice?  What is missing from the report is the resilience by these victims to make sure that their stories were heard by someone who actually cared.” Steve Wynn continues to deny all allegations and Las Vegas Metro is not acting on the complaints so, once the NGC levies its fine, there the matter is liable to rest. The Massachusetts Gaming Commission is hamstrung from reaching its own verdict since Steve Wynn has successfully enjoined the release of the Bay State’s report, at least for the time being.

The news had little effect on the company’s stock, suggesting that Wall Street had already prepared for the worst or considered the news better than expected. CDC Gaming Reports Executive Editor Howard Stutz noted that Wynn Resorts’ gaming licenses were untouched by sanctions, calling that “a very big deal.” All this mishegas should make interesting fodder for tomorrow’s earnings call.

* While no money may changed hands in the Wynn Resorts/Resorts World Las Vegas settlement, Genting Group issued a “my bad” statement saying “we have directed our design team to make several changes that will clearly differentiate the two properties.” Presumably having been privy to the changes that will be made, Wynn chief spokesman Michael Weaver said, “Resorts World Las Vegas’ initial design had elements which had similarity to our resorts in Las Vegas, Macau and Boston. The new design changes offered by Genting will resolve the concerns we expressed about the similarity of the design.” Who knew that architecture could be so exciting?

* Mandalay Bay shooter Stephen Pollock is destined to remain an enigma. His killing spree was motivated by sheer nihilism, according to the FBI. ““It wasn’t about MGM [Resorts International], Mandalay Bay or a specific casino or venue. It was all about doing the maximum amount of damage and him obtaining some form of infamy,” said FBI Special Agent Aaron Rouse. That non-explanation actually does explain why Paddock cased the joints of several other potential killing zones, including Fenway Park, all seemingly at random. Las Vegas‘ number just happened to come up. Dubbed “king of microaggression” by his younger brother, Paddock is described as “narcissistic, detail-oriented and maybe bored enough with life to plan an attack that would make him famous.” Depressive and mentally ill, Paddock said things like “Your God doesn’t love me.”

It is worth noting that, in the year and a half since the Mandalay Bay Massacre, nothing has been done to ban the high-velocity “bump stocks” that enabled Paddock to spray almost 1,000 rounds a minute into festival concertgoers. Equally disturbing, according to The Associated Press, “A separate report made public in August involving the Federal Emergency Management Agency found that communications were snarled during and after the shooting. It said police, fire and medical responders were overwhelmed by 911 calls, false reports of other shootings at Las Vegas casinos, and the number of victims.” If a man with no real agenda can be called a terrorist then the Las Vegas Strip has seen its first — and hopefully last — terrorist attack.