Steve Wynn will not be allowed to sell his shares in Wynn Resorts, according to a ruling from last week. Wynn will have to hold onto all of his shares, even if he needs to sell to safeguard the firm’s gambling licenses and reputation. Currently, Wynn Resorts is being investigated by certain gambling regulators, who will determine if the company can still keep its licenses.
Steve Wynn Barred from Selling his Stock
A Nevada judge made the ruling late last week. The ruling was made in response to a motion brought forward by Steve Wynn, asking to void a shareholder’s agreement. The agreement in question was created in 2010 and formed part of his divorce settlement with his ex-wife. The agreement itself prevented either party from selling their shares.
The judge decided that the agreement was intertwined with numerous other issues, such as the three-way lawsuit between Wynn and his ex-wife, and Japanese billionaire Kazuo Okada. Because of this, the agreement could not be overturned. This is unfortunate news for Wynn and Wynn Resorts. The ruling came shortly after the Massachusetts Gaming Commission (MGC) stated that it would consider Steve Wynn as a major part of the company, despite his resignation as CEO, due to his large stake in the company.
MGC May Require Wynn to Sell Stock
The MGC is currently investigating the serious sexual assault allegations against Steve Wynn. It also has the power to revoke the company’s gaming licence for its Boston Harbor project, which is currently still under construction. Several other gaming regulators have also started their own investigations, including Nevada and Macau.
According to state laws in Massachusetts, licensed companies could be required to remove undesirable people from the company and make them sell any shares they have. Mr Wynn currently owns 11.8% of Wynn Resorts stock, valued at $2 billion. His ex-wife owns the same amount, after the two agreed to evenly split the stock in the divorce settlement.
If the MGC decides Wynn Resorts will lose its license to build the Boston Harbor facility, unless Mr Wynn sells his stake in the gambling company, things will go very badly for the casino group.