Encore Boston Harbor

As part of a compromise to have a lawsuit against it dismissed, the Massachusetts Gaming Commission agreed to exclude certain information its investigators gleaned about allegations involving former casino magnate Steve Wynn from its forthcoming investigative report and will return some of the documents it obtained.

One section of the agreement, which was signed on March 1 and released publicly Thursday, suggests that commission investigators uncovered instances in which former Wynn Resorts executives were aware of allegations against Steve Wynn but did not take steps to investigate or report them. Wynn Resorts admitted the same in a January settlement with Nevada gaming regulators that led to a record $20 million fine against the company.

Under the agreement, the Gaming Commission and its Investigations and Enforcement Bureau (IEB) will not “publish an investigative report that contains, discloses or otherwise relies” on some of the materials that were the focus of Wynn’s lawsuit, and must return some of the documents it obtained from various sources during its inquiry.

The Gaming Commission voted in February to finalize an agreement to resolve the lawsuit, which Wynn filed against the commission and its top investigator in November seeking to keep certain documents out of the commission’s investigative report. The commission on Thursday released that agreement and redacted meeting minutes from six executive sessions during which the lawsuit was discussed.

The commission had previously ordered an investigation into allegations of sexual misconduct against Steve Wynn revealed by the Wall Street Journal last year and whether those allegations were shielded from the commission during the casino licensing process.

Wynn concedes in the agreement that the Gaming Commission can rely upon redacted versions of some of the documents at issue in his suit. One of the documents at issue is a report that a special committee of the Wynn Resorts board of directors had law firm Gibson Dunn & Crutcher prepare based on its own investigation into the allegations against Wynn.

Wynn Resorts, as part of the agreement released Thursday, agreed to “claw back” the Gibson Dunn Report from any entity it had given it to – like Massachusetts investigators – and the commission agreed to return the full unredacted report and other specific documents.

The agreement allows the commission to rid itself of the legal headache Wynn’s lawsuit represented and to move forward with its investigation of Wynn Resorts’ suitability. On Thursday, commission chairwoman Cathy Judd-Stein reiterated that she is confident that the commission will be able to make “a fully informed decision” on suitability based on the information that it will have available.

The commission’s report – which will be edited to comply with the agreement with Wynn – will be the foundation upon which regulators decide whether to revoke the Greater Boston area casino license awarded to Wynn Resorts in 2014. The report has been on hold for months pending the outcome of Steve Wynn’s lawsuit, but Wynn Resorts’ roughly $2.6 billion Encore Boston Harbor casino in Everett is 90 percent complete and plans to open June 23.

Gaming Commission Releases Agreement With Wynn

by State House News Service time to read: 2 min
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