Scientific Game

Wynn Resorts clears final litigation as Steve and Elaine Wynn settle

Tuesday, 17 April 2018 06:26
Share
Visit us

By Ben Blaschke and Andrew W Scott

Former Wynn Resorts boss Steve Wynn and ex-wife Elaine have agreed to settle the latter’s remaining claims relating to the alleged breach by Wynn in 2012 of a Stockholders Agreement between the two.

The settlement will also see Elaine Wynn release her claims against both Wynn Resorts and its General Counsel Kim Sinatra, with the company subsequently dropping its counter-claim emanating from the litigation that was first filed in 2012.

The news, announced in an SEC filing early Tuesday Macau time, marks a significant moment for Wynn Resorts which has now settled all litigation relating to the Stockholders Agreement and subsequent forced redemption of co-founder Kazuo Okada’s US$2.7 billion stake in 2015. Okada was also part of the original Stockholders Agreement.

In the two months since Steve Wynn stepped down from the board amid multiple sexual misconduct allegations, Wynn Resorts has been actively looking to clear the decks in the midst of ongoing investigations by the Nevada and Massachusetts and the impending re-licensing process in Macau.

The company last month dropped all claims against Okada in a lawsuit stemming from his 2012 dismissal from the board, with Wynn Resorts identifying the Japanese gaming mogul at the time as an “unsuitable Person” amid allegations he provided improper hospitality at Wynn properties to Philippine gaming officials to the tune of US$110,000 in a bid to win favor for his Okada Manila project.

It also reached a US$2.6 billion settlement agreement with Okada’s former companies Aruze USA and parent Universal Entertainment relating to the forced redemption and accrued interest. Okada was dumped from the Universal board in 2017 after the company discovered evidence of fraud.

The litigation just settled between Steve and Elaine Wynn had specifically related to the validity of the Stockholders Agreement, which had granted Steve Wynn voting control of Elaine Wynn’s 9% stake. The forced redemption of Okada’s shares saw Elaine Wynn claim the Stockholders Agreement was no longer valid and she took the matter to court in 2015 after losing her seat on the board – a fact she attributed to her having approached Wynn Resorts and Ms Sinatra specifically over Steve Wynn’s behavior.

Wynn Resorts said in this morning’s filing that “neither the company nor Ms Sinatra made any payment,” in relation to the settlement announced today.

But it also begs the question: what now for Steve Wynn? For the first time in many years he is not fighting for his business in the courts, although he still faces proceedings as a result of sexual misconduct allegations. He has no hotel or casino to run. He’s 76 years old and has been legally blind for eight years due to ongoing retinitis pigmentosa.

He has nothing left to prove, but if he did, he has nothing left to prove it with. Except a big pile of cash.

What's new

Osaka governor pushing for 2023 IR launch

Osaka governor pushing for 2023 IR launch The governor of Osaka has declared his ambition to open an integrated casino resort in the Japanese city by 2023. Speaking to local media this week, Governor Ichiro Matsui stated his intent to launch an IR within the next five years while downplaying concerns over ongoing political scandals involvi... Thursday, 26 April 2018 20:10

Steve Wolstenholme appointed Group COO of Vietnam IR Hoiana

Steve Wolstenholme appointed Group COO of Vietnam IR Hoiana Vietnam’s Hoi An South Development has announced the appointment of former Okada Manila President and Managing Director Steve Wolstenholme as Group Chief Operating Officer. Wolstenholme brings a wealth of international experience in Asia and North America to Hoiana, including senior roles as Pres... Thursday, 26 April 2018 17:34

Weike to present revolutionary ETG products at G2E Asia in 2018

Weike to present revolutionary ETG products at G2E Asia in 2018 Weike Gaming Technology has announced that it will present its new line of electronic table gaming products; Multi Electronic Table Game – Real Cards Virtual Chips (METG RCVC) and Virtual Multi-Game (VMG) at G2E Asia this year. The METG RCVC is a newly released Semi-Live Baccarat Dealer Table usi... Thursday, 26 April 2018 15:21

G2E Asia Awards: Meet the Judges – Steve Gallaway

G2E Asia Awards: Meet the Judges – Steve Gallaway Steve Gallaway is Managing Partner at Global Market Advisors. His areas of expertise include gaming market assessments, hotel and casino feasibility studies, operational reviews and marketing analysis. Mr Gallaway has spent his entire career in the gaming and hospitality industry, starting as a val... Thursday, 26 April 2018 06:58

Current Issue

G2E ASIA AWARDS to debut in 2018

G2E ASIA AWARDS to debut in 2018 Inside Asian Gaming and G2E Asia will co-organize the inaugural G2E Asia Awards in 2018 – the official awards of Asia’s biggest industry  trade show and exhibition, G2E Asia. In an exciting development for the Asian gaming industry, Inside Asian Gaming and G2E Asia announced in March that they... Wednesday, 04 April 2018 14:07

Indian Dreaming: Tiger Palace putting Nepal in the game

Indian Dreaming: Tiger Palace putting Nepal in the game By Ben Blaschke The first integrated resort to be built in South Asia, Tiger Palace Resort in Nepal’s lowland Terai plains sits just eight kilometers from the border with India’s most populous state Uttar Pradesh, home to some 215 million people. At US$52 million it also represents a fascinatin... Wednesday, 04 April 2018 14:12

Digital Danger

Digital Danger As the world becomes increasingly digital, the world’s casino operators are taking cyber security more seriously than ever before. But as leading risk mitigation company Kroll explains, risks remain – and not always where you might expect.  By Ben Blaschke AS cautionary tales go, the downfall... Wednesday, 04 April 2018 14:09

Gaming development outlook along the Belt and Road

Gaming development outlook along the Belt and Road Michael Zhu, SVP of International Planning and Analysis for The Innovation Group, delves into the benefits that Chinese President Xi Jinping’s “One Belt and One Road” initiative will bring to Asia’s gaming industry. By Michael Zhu PRIOR to the current recovery of Macau’s gaming malaise, ... Wednesday, 04 April 2018 14:08