Operator News
Japan – Wynn pays $2bn to settle with Universal
By Phil - 9 March 2018
Wynn Resorts has paid a US$2bn settlement fee to Universal Entertainment and Aruze USA to end all litigation between the two companies.
The settlement is related to the Wynn’s board of directors forcing then board member and boss of Universal Kazuo Okada, pictured, to relinquish US$2.8bn of shares in the company in 2012. Then Wynn Resorts CEO Steve Wynn said Okada had jeopardised Wynn’s gaming license by alleging he offered improper hospitality at Wynn properties and gifts to Philippine gaming officials.
Wynn Resorts said: “Wynn Resorts has concluded a settlement agreement with Universal Entertainment Corporation and Aruze USA, regarding litigation between the parties which began in February 2012 and was related to the redemption of Aruze USA’s equity stake in the company. The settlement provides for the parties to the agreement to dismiss all litigation between Universal Entertainment and Aruze USA, and Wynn Resorts, its then-directors and executives with respect to the redemption. The settlement agreement also puts an end to claims brought by Universal Entertainment and Aruze USA against Wynn Macau in Macau.”
Wynn added: “The settlement agreement, which is effective today, provides for Wynn Resorts to pay, on March 31, 2018, the $1,936,442,631.36 principal amount of the redemption note that the Company previously issued to Aruze. Wynn Resorts also agreed to pay an additional amount of $463,557,368.64 on March 31, 2018, to settle allegations surrounding the interest rate on the redemption note. Among other items, the settlement agreement provides that Aruze USA, will not consider itself a party to the Amended and Restated Stockholders Agreement among Universal Entertainment’s subsidiary Aruze USA, Steve Wynn and Elaine P. Wynn, nor will it assert any claims or rights under the Stockholders Agreement.”
In other news, two members of Wynn Resorts’ board of directors are to resign, as the operator continues to restructure following the allegations of sexual misconduct by and subsequent resignation of former Chief Executive Steve Wynn. Board member Ray Irani will resign from the board immediately, whilst Alvin Shoemaker will continue through to next year to see his term out but he won’t be putting himself forward for re-election. Newly appointed CEO Matt Maddox said the nine-member board will ‘expand and refresh its ranks.’
“The candidate search is well underway with our focus being on bringing additional perspectives to the Board room,” he said. He highlighted how results for the first two months of the year hadn’t been affected by the allegations with ‘strong across the portfolio.’
GGR for the company’s Macau properties increased by 27 per cent, to $855.3m in January and February whilst in Las Vegas, revenue dropped by just two per cent to $271.2m. He added: “The power of the Wynn brand makes Wynn Las Vegas the destination of choice for the most discerning international customers with $247m of inbound gross table win from international customers at Wynn Las Vegas in 2017.”
