It’s a question many in the gaming industry must be asking, if only privately:
Given the tumultuous start of 2018, how does the troubled powerhouse Wynn Resorts keep focused on the business at hand?
The departure of its co-founder and Chairman Steve Wynn under a cloud of sexual harassment allegations was just the start. Wynn denied the allegations, sold his entire $2.1 billion stake on March 22, and retreated from the leadership of a company long considered a casino industry leader. He’s also filed defamation suits against an attorney for one of his accusers, a former Wynn Las Vegas salon director, and The Associated Press.
As that tsunami passed, it left the landscape of the company demonstrably changed. Licensing for its sparkling $2.4 billion casino-resort just outside Boston was suddenly in question due to the harassment scandal. Massachusetts, Nevada, and Macau gaming regulators announced they were investigating the facts and circumstances. The question of suitability loomed even after Matt Maddox rose to take over the CEO’s duties.
And almost nobody predicted the emergence of Elaine Wynn, the winner by a knockout in the ugly civil dispute with her ex-husband over control of her 9-percent share of the company, as a force and influence at the Steve-less Wynn Resorts.
Elaine Wynn has embarked on a remake of the company’s high-paid, male-dominated board, and these days I’m not sure anyone is betting against her. Her presentation of three highly capable women to the board as directors was nothing short of inspired. Dee Dee Myers, Betsy Atkins and Wendy Webb were called “qualified, diverse, and independent” by the company. Her criticism is the re-election to the board of her ex-husband’s friend, businessman John Hagenbuch.
At least one thing appears certain. Rumors to the contrary, the Wynn Resorts’ Boston project isn’t a likely target for purchase by rival MGM Resorts. Its Chairman James Murren this past week during a post-earnings conference call made it clear that an acquisition of the Boston Harbor palace currently under construction was unlikely.
Maddox alluded to the general possibility in a recent interview, saying if “there was ever any risk, due to heightened rhetoric, that there would be any contagion from Massachusetts … we will have to take a hard look at what is best to protect our shareholders and our value.”
During the company’s recent first-quarter earnings call, Maddox showed he possessed the gift of understatement when he began by saying, “It’s definitely been an eventful three months since we last reported quarterly earnings. So, I’d like to start the call by reminding everyone of who we are.”
He then went on a sales pitch that must have heartened stockholders longing for a little optimism.
“We are the leading operator of luxury, five-star integrated resorts catering to the most discerning customers in the world,” Maddox said. “We are the designers and developers of buildings and amenities that are global, international tourist destinations. We are 25,000 professionals, dealers, architects, florists, housekeepers, performers, chefs, designers and thousands and thousands of others. They deliver our brand promise to over 20 million customers globally every single year. Over the past three months, those 25,000 people have done what they do best. Being in the moment with our customers, paying attention to every detail, and delivering the best experience available in the markets where we operate.”
The co-founder couldn’t have said it better himself.
Maddox said company management remained “focused” on growing the business and “stabilizing the culture” as well as “reducing the noise surrounding our business.”
If Maddox still has questions to answer about the company’s past, he made it clear he’s looking forward these days.
“As CEO, I’m not interested in looking in the rearview mirror … I’m only focused on the future,” he said in a transcript provided by Seeking Alpha. “And in order to focus on the future, we had to make meaningful progress over the last 60 days so that on each and every one of these calls, we are talking about our business and we are talking about our people and we are talking about our growth.”
With so many issues in play and questions unanswered at Wynn Resorts, expressing optimism may be the easy part.
Contact John L. Smith at jlnevadasmith@gmail.com. On Twitter: @jlnevadasmith.
