The Massachusetts Gaming Commission lost its chairman a day before discussion about its investigation of Steve Wynn and Wynn Resorts Ltd. Were to begin.
Stephen Crosby resigned wednesday in the wake of accusations that he would be biased in decision concerning the investigation.
Massachusetts regulators are working to determine what punitive measures, if any to take against Wynn Resorts. Steve Wynn, the casino operator’s co-founder, resigned as CEO in February amid reports that he harassed and assaulted female employees over decades. He has denied all accusation.
The Company’s $2.5 billion Encore Boston Harbour Resort is about nine months away from completion.
The resignation is effective immediately. Crosby declined a request for an interview.
In his resignation letter, Crosby said the accusations that he would be biased in determining how to complete the Wynn Investigation are unfounded. It is unclear how the investigation will affect the process, but a legal expert excepts the investigation and hearing to go.
Carliss Chatman, a visiting law professor at Washington and Lee University in Lexington, Virginia, Said she thinks Crosby’s resignation appears to be an “advice” of counsel kind of moment”.
Past Accusation: In his resignation letter, Crosby said he has seen accusations of bias before.
“It was about 4 years ago that the Gaming commission was battered by lawsuits and accusations of bias in the matter of the Region A licensing process” he said. “I was often at the centre of these lawsuits and accusations”.
The commission has the authority to suspend or revoke Wynn Resorts gaming licenses in that state and fine of the company.
Massachusetts Investigation: The investigation is looking into reports of sexual misconduct, as well as other executives were aware of the allegation and when. Investigators have focused on steve Wynn’s failure to disclose during a licensing hearing in 2014, a $7.5 million settlement payment of a 2005 paternity claim to a former employee.
Nevada Investigation: The state gaming control board in nevada is conducting its own investigation of Steve Wynn and Wynn Resorts. Chairwoman Becky harris has indicated Nevada investigators would disclose their findings after the Massachusetts hearing. The board could then file a complaint through attorney general’s consideration by the Nevada gaming commission.