As one member of the Gaming Control Board feared federal intervention in the Nevada gaming industry, the chief operating officer of Wynn Resorts North America told regulators Wednesday that the casino operator is a better company today than the one punished for AML-related violations and accusations of not investigating sexual misconduct by its founder Steve Wynn.
Brian Gullbrants appeared before the Nevada Gaming Control Board over his application for finding of suitability as an officer. The three-member body recommended approval to the Nevada Gaming Commission.
Gullbrants’s appearance came on a day when Board member George Assad said he was worried about AML violations catching the attention of federal authorities and leading to their involvement.
Gaming Control Board Chair Kirk Hendrick brought up the issues Wynn Resorts has faced over the years. The operator forfeited $130 million to the U.S. government in 2024 for AML-related violations. The Nevada Gaming Commission fined Wynn $5.5 million in the case.
In 2019, the Commission fined the Wynn $20 million for failing to investigate allegations of sexual misconduct against Steve Wynn before his resignation. Massachusetts also fined the company $35.5 million for failing to disclose the allegations.
Gullbrants worked at Wynn in Las Vegas from 2014 to 2017 in a non-gaming capacity as executive vice president of operations for the hotel before being assigned to Massachusetts. When asked by Hendrick how the company has evolved over the years, he said, “We’ve all grown a lot and we’re a very different company than it was back then. We were a founder-led company. We’ve now had a compliance board for five years. The Massachusetts Gaming Commission assigned us a monitor to ensure we were doing everything correctly. We’ve made significant steps in having an independent board for compliance.”
As for harassment and other issues that have happened at Wynn, Gullbrants said, “Every week, I speak at new-employee orientation and set the tone from the top. I talk about respect and that if they see something, they must say something, and that includes me and our CEO. So yes, we have changed.”
Hendrick appreciated those statements being put on the record, as well as the nightly memo to employees and his personal touch, so they know they can come to him.
“We’re looking for employees to know that if there’s an issue, they can come to the Gaming Control Board, their supervisors and the chief operating officer,” Hendrick said. “That changes the culture.”
Gullbrants gave an example from the fourth quarter 2023 when a high-profile customer he wouldn’t name did “something inappropriate that wasn’t acceptable.” When it was reported to him, he determined that the employee was “far more valuable than this one customer, who’s worth billions. We trespassed him. He’s never staying here again.”
Hendrick said that’s the kind of culture “we want, so that employees who do bring things forward are heard, responded to, and respected.”
Board member George Assad said Nevada gaming regulators have been sending a message by fining the Wynn, Resorts World and MGM Resorts over AML violations.
“This is a new day in Las Vegas for the casino industry. If we don’t want federal intervention, the properties need to pay close attention to who their customers are (the Banking Secrecy Act and AML). That’s critical if we want to maintain our gold standard. In D.C., they’re talking about creating a federal gaming commission and with that will probably come a 4% tax on gaming revenues and on and on. The federal government would love to get their claws into Nevada. It’s important that the industry do the right thing and let the federal government know we can manage our own business and if there’s dirty laundry, we can clean it up.”
Earlier in the Board meeting, Assad brought up the issue to Kate Lowenhar-Fisher, who will become IGT’s compliance officer with the merger with Everi under the ownership of Apollo Global Management.
“As you’re aware, there’ve been a lot of AML issues with three licensees as of today, big ones on the Strip.” Assad asked her about the common theme for their problems.
“The common theme is there tends to be a little bit of a breakdown in the internal culture of compliance,” Lowenhar-Fisher said. “There can be some complacency. We’ve seen this over the decades, where sometimes the industry just needs a wake-up call to reestablish that compliance isn’t secondary. It always needs to be on the top of mind and govern decisions.”
Lowenhar-Fisher said it’s a difficult job to operate a compliance organization at a resort hotel.
“My advice is to keep the marketing department the hell out of the compliance department, because what we saw was the marketing people overran the compliance people. The compliance folks tried to do the right thing and had good intentions, but by sheer force of personality and the fact they’re the marketing department that brings in a substantial amount of revenue, they overran compliance.”
Gullbrants previously served as executive vice president of operations who helped open Encore Boston Harbor as the No. 2 on the property and later served as president before returning to Las Vegas to become president of Wynn Las Vegas and Encore. He was promoted to COO for North America 2½ years ago. He said the marketing department doesn’t lead Wynn Resorts’s efforts; the compliance department does.
“AML and the Banking Secrecy Act areis very important to Wynn Resorts and I help set that tone at the top,” Gullbrants said. “There’s no compromise. Our license is worth more than any one individual.”
