Board member describes Wynn 'war zone' in gaming commission testimony

BOSTON — Board members from Wynn Resorts are trying to prove to Massachusetts regulators the company has changed dramatically since founder Steve Wynn resigned under a cloud of sexual assault claims.

Last year, dozens of women came forward with sexual misconduct allegations against gaming mogul Steve Wynn. The charges led him to resign as CEO of Wynn Resorts.

In hearings Tuesday and Wednesday, the Massachusetts Gaming Commission demanded answers from the company's board of directors about what they knew and when.

"I walked into a war zone," board member Pay Mulroy said of the atmosphere inside the gaming giant when she joined in 2015. "I cannot emphasize just how bad the vitriol, the animosity, and the hostility was between the parties."

Those parties were Steve Wynn and his ex-wife, Elaine. She had just filed a lawsuit, in which she claimed her husband paid a secret settlement to hide allegations of sexual misconduct with an employee.

"You said the board was angry with Elaine Wynn, why weren't they angry with Steve Wynn, because they didn't believe Elaine Wynn," she said.

Those allegations are why the gaming commission is reviewing the licence of Wynn Resorts to operate the Encore Boston Harbor Hotel in Everett. Regulators expressed concerns that company managers hid the settlement from the board and the board failed to properly investigate.

Mulroy was also asked in graphic detail what she was told about the allegations.

The testimony will continue Thursday and then the gaming commission will determine if Wynn Resorts is suitable to keep the license for the Everett Casino, which is scheduled to open in June.

Cox Media Group