{"id":73698,"date":"2018-03-26T12:00:53","date_gmt":"2018-03-26T19:00:53","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=73698"},"modified":"2018-03-26T11:42:06","modified_gmt":"2018-03-26T18:42:06","slug":"nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal\/","title":{"rendered":"Nevada Regulator to Scrutinize Galaxy Entertainment Over $1 Billion Wynn Resorts Deal"},"content":{"rendered":"

Galaxy Entertainment, which last week bought a 4.9 percent stake in Wynn Resorts<\/a> for just under $1 billion, will be the subject of a suitability probe by the Nevada Gaming Control Board<\/a> (NGCB), the regulator has confirmed.<\/p>\n

\"Nevada
The Galaxy Entertainment Group\u2019s purchase of a 5 percent stake in Wynn Resorts is good for the latter\u2019s shareholders but will it sit well with Nevada regulators? (Image: Galaxy Entertainment)<\/figcaption><\/figure>\n

Entities owning more than 10 percent of a casino in Nevada are subject to scrutiny from gambling regulators as a matter of course. A 5 percent stake demands a reporting requirement. In the case of Galaxy, NGCB has used its discretion to decide to pursue due diligence.<\/p>\n

\u201cAs is its ordinary course, the Nevada Gaming Control Board engages in a due diligence process for any shareholder approaching a reporting requirement,\u201d NGCB chairwoman Becky Harris said in an email to Bloomberg<\/em> on Friday.<\/p>\n

LVS Allegations<\/strong><\/h2>\n

On Thursday Wynn Resorts announced that former majority shareholder Steve Wynn had divested his entire stake in the company. The founder and former chairman and CEO stepped down in early February amid allegations of sexual misconduct against his staff, allegedly spanning decades.<\/p>\n

As several jurisdictions began investigations into Wynn\u2019s own suitability as a casino owner, he sold his stock to safeguard the company\u2019s licenses.<\/p>\n

\n

Hong Kong-based Galaxy is the second biggest operator in Macau, after LVS\u2019 Sands China.It\u2019s possible the NCGB\u2019s curiosity may have been piqued by the company’s past reliance on the junket industry, which, according to an LVS executive, was once controlled by triads.<\/p>\n<\/div>\n

In 2002, LVS teamed up with Galaxy Entertainment Group as a management partner, to push for a gaming concession in Macau, but LVS ultimately broke off the relationship.<\/p>\n

In 2007, former president of LVS William Weidner told a Nevada courtroom that was because \u201cthese guys want to do VIP rooms the way they … do them in Macau where the … triad guys run them because they\u2019re the only ones that can grant and collect credit in mainland China, and they smuggle the renminbi across the border.\u201d<\/p>\n

LVS Chairman and CEO Sheldon Adelson made similar comments in 2013, prompting Galaxy to issue a filing with the Hong Kong stock exchange objecting to \u201ccertain inaccurate statements.\u201d<\/p>\n

Deal OK\u2019d in Macau<\/strong><\/h2>\n

Since then, however, Chinese President Xi Jinping\u2019s corruption crackdown has forced Macau to regulate the junkets more stringently. today it\u2019s unclear just how much influence triad organizations still have on the junket industry, if any at all \u2013 nor is there any reason to believe Galaxy has ever done business directly with any such organizations. The NGCB is likely to look into the LVS allegations, nevertheless.<\/p>\n

Meanwhile, the Macau gaming regulator announced on Friday that the Wynn-Galaxy deal did not breach local gaming law. Macau gaming operators, and shareholders who own more than five percent of Macau gaming companies, are prohibited from holding a stake of 5 percent or more in other local gaming companies.<\/p>\n

The regulator noted that the sale of shares was for less than five percent adding that because Galaxy has bought into Wynn Resorts and not Wynn Macau, the law did not apply.<\/p>\n","protected":false},"excerpt":{"rendered":"

Galaxy Entertainment, which last week bought a 4.9 percent stake in Wynn Resorts for just under $1 billion, will be the subject of a suitability probe by the Nevada Gaming Control Board (NGCB), the regulator has confirmed. Entities owning more than 10 percent of a casino in Nevada are subject to scrutiny from gambling regulators […]<\/p>\n","protected":false},"author":42,"featured_media":73701,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,18,13592],"tags":[],"acf":[],"yoast_head":"\nNevada Regulator to Scrutinize Galaxy Entertainment Over Wynn Deal<\/title>\n<meta name=\"description\" content=\"Galaxy Entertainment will be the subject of a suitability probe by the Nevada Gaming Control Board over its $1 billion deal to buy a 4.9 percent stake in Wynn Resorts from Steve Wynn.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nevada Regulator to Scrutinize Galaxy Entertainment Over Wynn Deal\" \/>\n<meta property=\"og:description\" content=\"Galaxy Entertainment will be the subject of a suitability probe by the Nevada Gaming Control Board over its $1 billion deal to buy a 4.9 percent stake in Wynn Resorts from Steve Wynn.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-26T19:00:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-03-26T18:42:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2018\/03\/galaxy-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1800\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Casino.org Staff Writer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Casino.org Staff Writer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal\/\",\"url\":\"https:\/\/www.casino.org\/news\/nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal\/\",\"name\":\"Nevada Regulator to Scrutinize Galaxy Entertainment Over Wynn Deal\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2018\/03\/galaxy-2.jpg\",\"datePublished\":\"2018-03-26T19:00:53+00:00\",\"dateModified\":\"2018-03-26T18:42:06+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/8c48bf89dc86da77b4d856c7b3b78d77\"},\"description\":\"Galaxy Entertainment will be the subject of a suitability probe by the Nevada Gaming Control Board over its $1 billion deal to buy a 4.9 percent stake in Wynn Resorts from Steve Wynn.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/nevada-regulator-to-scrutinize-galaxy-entertainment-over-1-billion-wynn-resorts-deal\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2018\/03\/galaxy-2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2018\/03\/galaxy-2.jpg\",\"width\":1800,\"height\":1200,\"caption\":\"The Galaxy Entertainment Group\u2019s purchase of a 5 percent stake in Wynn Resorts is good for the latter\u2019s shareholders but will it sit well with Nevada regulators? 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