Is Our Gamble On Wynn Coming Up Snake Eyes?

posted by Jon Keller - 

Steve Wynn sexual assault allegations

Steve Wynn. (Drew Angerer/Getty Images)

BOSTON (WBZ-AM) -- The Wall Street Journal report on casino mogul Steve Wynn’s alleged serial sexual harassment of employees is pretty nasty stuff.

The Republican National Committee has already dumped Wynn as their treasurer, and if these charges stick, it wouldn’t be far-fetched for Wynn Resorts to follow suit.

Watch the stock market today.

On Friday, after the Journal story broke, the company lost $2.1 billion in market value, a ten percent slide in its stock value.

Bad news for Wynn, who could now struggle to become a big player in the lucrative Japanese market which is just about to open up to casino expansion.

And as we saw when Martha Stewart went to prison and her namesake company’s stock tanked, a personal downfall for Wynn could devastate the company. As their own securities filings concede: “If we lose the services of Mr. Wynn, or if he is unable to devote sufficient attention to our operations for any other reason, our business may be significantly impaired.”

And bad news for Wynn potentially means very bad news for Massachusetts.

Our state bet big on Wynn when it awarded him the Boston-area casino license a few years ago. The $2.4 billion project is slated to open next year, right into the teeth of a struggling, over-saturated Northeast gambling market.

If their cash flow dries up or the high-rollers they rely on start to shun Wynn properties, look out below.

We’ll be counting on VIP revenues from a glorified slots parlor, and the terrible judgment that has been the trademark of our adventure in casino gambling will notch another milestone.

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Keller @ Large

Keller @ Large

Jon Keller is a WBZ TV & Radio political analyst. Read more

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