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Gambling regulators authorize settlement in Wynn lawsuit

The Massachusetts Gaming Commission voted Wednesday to authorize its legal counsel to finalize an agreement with Steve Wynn.Charles Krupa/Associated Press/File 2016/Associated Press

BOSTON — A settlement is pending in casino mogul Steve Wynn’s lawsuit seeking to block the release of Massachusetts’ investigation into allegations of sexual assault against him.

The Massachusetts Gaming Commission voted Wednesday to authorize its legal counsel to finalize an agreement with Wynn to dismiss his lawsuit filed in Clark County District Court in Las Vegas, Nevada.

Specific terms weren’t disclosed, but the commission said the deal would guarantee access to the report its investigators have compiled but have been unable to release. Brian Kelly, a Massachusetts lawyer representing Steve Wynn in a separate matter, said the agreement ‘‘ensures that no privileged materials are improperly utilized’’ when investigators turn in their report to the commission.


The commission is considering whether Wynn Resorts — the company Steve Wynn founded but stepped away from last year — is still suitable to hold a state casino license in light of the misconduct allegations, which Wynn has denied.

Last month, Clark County District Court Judge Elizabeth Gonzalez ruled the report would remain secret until she could determine whether it contains confidential information or material protected by attorney-client privilege, as Wynn’s personal lawyers contend.

The Massachusetts Gaming Commission said after Wednesday’s vote that reaching a settlement eliminates the uncertainty of protracted litigation, allows it to review the investigative report and proceed with a public hearing on the future of Encore Boston Harbor, the more than $2 billion waterfront resort slated to open in June in the Boston suburb of Everett.

After the sexual misconduct revelations against Steve Wynn became public last January, the gaming commission launched an inquiry into how the company handled had handled accusations raised by female employees.

Among the questions for Massachusetts investigators was whether information about a $7.5 million settlement with one of Wynn’s accusers was deliberately withheld during an initial background check as regulators were considering which company would win the lucrative Boston-area casino license back in 2014.


Connecticut-based Mohegan Sun, which also vied for the license, has filed lawsuits in state and federal court over the years seeking to have the decision overturned.

Wynn Resorts said in a statement it looks forward to a public hearing in Massachusetts.

Last month, it reached a settlement with the Nevada Gaming Control Board after the board found that former company executives failed on multiple occasions to investigate the sexual misconduct claims against Steve Wynn.

That settlement did not revoke or limit the Nevada company’s gambling license but requires it to pay a fine to be set later.