Gaming commission split on Encore license vote

BOSTON — The Encore Boston Harbor casino will indeed open next month after the state gaming commission voted to maintain the gaming license there despite a year-long investigation into sexual misconduct claims in the formerly-named Wynn Resorts.

The chair of the five-member commission wouldn’t tell us how that vote was split, but we do know at least one of the members had concerns the Wynn Resorts CEO wasn’t suitable for the job.

With that, the future of Encore Boston Harbor was secured as the state gaming commission issued a decision to maintain the casino's gaming license.

"We will always protect the vulnerable and make sure our employees here in Massachusetts are safe," Mass. Gaming Commission Chair Cathy Judd-Stein said.

The decision came after a three-day hearing in April, where gaming commissioners questioned the suitability of Wynn Resorts leaders following their inaction on years of sexual misconduct allegations against former Wynn CEO Steve Wynn.

The commission slapped Wynn Resorts with a $35 million fine and a separate $500,000 fine against current Wynn CEO Matthew Maddox. The $35.5 million in fines will be funneled into the gaming commission revenue and later disbursed to various state agencies.

"We looked at all of the violations, all of the behavior and we think our numbers are commensurate with that," Mass. Gaming Commissioner Gayle Cameron said.

In its 54-page decision, commissioners wrote: “Mr. Maddox has, at critical junctures, demonstrated questionable judgment and other considerable shortcomings." And they say the vote on Maddox’s suitability as CEO was not unanimous.

"I think the main message we want to send is how much we feel our role is to secure integrity of the gaming industry here," Judd-Stein said.

Gaming officials say the most important step will be selecting an independent monitor, paid for by Wynn, who will oversee the implementation of new sexual harassment training and policies to ensure all of the staff in Boston are safe.

A Wynn spokesperson told Boston 25 News they are still reviewing the decision and considering next steps. They have 30 days to either appeal the decision or must pay that huge fine.

Wynn Resorts sent Boston 25 News the following statement:

"Wynn Resorts CEO Matt Maddox and the Board of Directors have worked diligently to make the important and necessary changes to the Company's corporate leadership, governance, compliance programs and Human Resources policies.  With the Massachusetts Gaming Commission review complete, our company is now focused on a successful launch of Encore Boston Harbor, and the recruiting and training of 5,500 team members who will be bringing Greater Boston and New England a luxury hospitality and entertainment experience unlike anything the region has ever seen.

In both its decision and in their meeting today, the Commission recognized the importance of the changes the company has made, with Chairwoman Judd-Stein noting in today's meeting: "It's fair to say that recent changes to the company's governance model, policies, trainings, and operations show a new commitment and focus on all levels of employees, which combined with the ongoing successful business operations continue to demonstrate that Wynn will likely be a successful operator in Everett."

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