More details of Elaine Wynn‘s lawsuit against Wynn Resorts, CEO Steve Wynn and General Counsel Kim Sinatra are emerging. She barrages the three with a litany of complaints, one of which seems to imply that her ex got a company employee knocked up
and had to pay her off. Among the more newly revealed allegations is the charge that “Mr. Wynn was forced to terminate employees who he never should have hired because of their associations with alleged illegal activity and, in at least one case, hid the reasons for the executive’s departure,” which sounds like something the Nevada Gaming Control Board should be examining, if Mrs. Wynn can actually substantiate it. She also accuses the Wynn Resorts board of directors of being a rubber stamp for her ex-husband’s wishes, although a ‘pet rock’ corporate board would hardly be a first in this industry. (The Harrah’s Entertainment board in the years leading up to the disastrous LBO comes instantly to mind.)
In a formal response to his ex’s lawsuit, Mr. Wynn got in a few digs of his own, including, “This is simply an attempt to inflict personal pain on Mr. Wynn. Ms. Wynn is a disappointed ex-wife who is seeking to tarnish the reputation of Wynn Resorts and Steve Wynn and their daughters.” As for her specific complaints, they are dismissed as stale news, “some of which are over a decade old.” It would save the company a lot of grief to simply turn Mrs. Wynn’s shares loose, but they represent 10% of the company’s total market capitalization and Steve Wynn may have very good reasons for not wanting to relinquish veto power over the disposition of that much stock — such as falling to third-largest shareholder of WYNN and much less able to steer the course of the company. So it looks like we’re headed for the courthouse and a very entertaining trial.
* With gaming expansion destined for the November ballot, Atlantic City champion Roger Gros marshals a seven-point argument on how to defeat the referendum. One of his points should be holy writ whenever competing casino interests are at war: “Do not succumb to using anti-gaming rhetoric that is false and misleading.” It’s amazing how holier-than-thou some casinos get when others are threatening to cut in on their action. Meanwhile, New Jersey Gov. Chris Christie (R) is holding the casino referendum hostage until the the Legislature — read: Assembly Speaker Vincent Prieto (D) — gives him what he wants, a clean bill to permit the state to take over Atlantic City.
* Rush Street Gaming is progressing nicely with its Rivers Casino & Resort in Schenectady and, in return for making its $50 million license payment, got the nearest thoroughfare named Rush Street. This tradeoff sparked some local debate, with
dissenters saying longtime Schenectady industrial mainstay Alco should have had the honor. Said City Councilman Marion Porterfield, “Here’s an opportunity from the outset to pay honor and homage to the history of Schenectady. Rush Street doesn’t mean anything to Schenectady.” Oh, but it will. It seems surprising, based on the amount of progress to date, but the project won’t be finished until next year. After all, when all is said and done, the accompanying Mohawk Harbor development will encompass “a lagoon with slips for 50 boats, condominiums, two hotels, a bike path, pedestrian walkway.” We have to hand it to developer Neil Bluhm: He’s gone all in with this $480 million project.
* In addition to committing to booking events into Symphony Hall and CityStage, now MGM Resorts International has its eyes on a bigger prize in Springfield. It would partner with Spectra to run the MassMutual Center. After six months, Spectra would be phased out and MassMutual would be MGM’s baby. It’s just a proposal at this point, but MGM is already making the selling point that it can leverage its business relationships at its other arenas to bring big-ticket entertainment to Springfield. Under the terms of the plan, MGM would become sole operator on Jan. 1, 2017. If this bid is accepted, MGM would become a player in the Springfield community well before MGM Springfield is complete. As Springfield Republican reporter Ray Kelly wittily put it, this move by MGM is “part of its commitment to the city to not be a fortress of financial solitude.”
* Speaking of MGM and entertainment, all those Criss Angel Believe billboards and building wraps will be coming down. No, Angel isn’t leaving Luxor: His show is being rebranded as Mindfreak Live, which is all his fans ever wanted of Angel-in-Vegas. Cirque du Soleil miscalculated badly in its attempt to reinvent Angel in its own fey image. Were it not for the richness of the illusionist’s buyout clause, we would probably have seen the last of Believe long before this.
