Wynn buys out former vice-chairman
Board of casino group accuses Kazuo Okada of improper payments to regulators.
Wynn Resorts Limited has forcibly bought out the 20% stakeholding of former vice-chairman Kazuo Okada at a discount amid allegations of impropriety.
Steve Wynn, chief executive of the casino group has, along with his fellow board members, deemed Okada and his company Universal Entertainment Corporation, “unsuitable” after a year-long internal investigation.
The enquiry, conducted by Wynn’s ‘compliance committee’ with the assistance of former FBI chief Louis Freeh, alleges that Japanese national Okada is guilty of violating US anti-corruption legislation following payments of US$110,000 to foreign gambling regulators.
According to a statement from Wynn Resorts, “Following a finding of “unsuitability,” the Articles provide for redemption at “fair value” of the shares held by unsuitable persons to protect the Company’s gaming licenses.”
It mentions by name Aruze USA Inc., the Okada-owned slots manufacturer and subsidiary of Universal Entertainment in whose name the shares are registered.
The compliance committee report also requested that Okada resign as a director of Wynn Resorts, while recommending his removal from the board of Asian subsidiary Wynn Macau.
Okada’s company called the findings “outrageous”, adding that “Universal Entertainment will take all legal actions necessary to protect its investment and prevent a forced redemption of its shares.” The shares, worth US$2.7bn, will be bought back by Wynn for $1.9bn over the course of 10 years.
Last year, with the internal investigation still ongoing, Okada was stripped of his vice-chairman title by the operator, which owns land-based casinos in Las Vegas and Macau.
Wynn had signed a provisional online poker agreement in March last year, with a view to US federal egaming regulation, but pulled out of the deal when PokerStars founder Isai Scheinberg and head of payments Paul Tate were indicted on Black Friday. It is yet to apply for a Nevada egaming licence.