Fertitta Slams Wynn Resorts’ Leadership as He Gets Approval from Regulators

Investor Tilman Fertitta has expressed major doubts about how Wynn Resorts is run and how its stock is doing. This comes right after Nevada regulators said he was fit to stay on as the company’s biggest shareholder.

Fertitta Expresses Frustration as Wynn Stock Declines Below $87

Fertitta owns about 12.3% of Wynn stock and lately has shown displeasure with the company’s management. At a Nevada Gaming Control Board hearing on Wednesday, Steven Scheinthal, the General Counsel for Fertitta Entertainment, spoke for Fertitta, as reported by The Las Vegas Review-Journal. He shared that the businessman is not happy with recent company choices and the drop in stock price. Fertitta did not attend the meeting. He has moved to Italy to start his new job as US ambassador to Italy and San Marino.

Even though Fertitta has stepped back from managing his business interests due to federal ethics rules, he can still own shares and get dividends. Scheinthal pointed out that Fertitta continues to have money in Wynn but is getting more worried about how it is doing.

During the hearing, Scheinthal noted that Fertitta is not pleased with the share price or the choices the current Wynn executives are making. Wynn stocks, which were worth over $130 in 2021, have dropped to under $87 in the past few weeks.

Fertitta Points to Oversight Lapses at Wynn While Backing UAE Resort Plans

Fertitta’s complaints seem to focus on both financial matters and past rule-breaking. He was not happy about Wynn’s recent $130 million payment to the federal government and $5.5 million fine from Nevada officials for failing to stop money laundering. These punishments came from long-standing problems, including deals with unlicensed money-transmitting businesses.

Scheinthal says Fertitta thinks these rule-breaking issues show mistakes in company oversight. He also said things would have been different if he was in charge.

Despite his frustration, Fertitta feels hopeful about Wynn’s growth overseas. He is especially excited about the new $5.1 billion resort coming to Al Marjan Island in the UAE, set to open in 2027. He thinks this project could boost the company’s value for shareholders.

Now that he is an ambassador, Fertitta has stepped down from his executive positions across his businesses. However, he plans to stay involved in shaping strategy from afar. His former spouse, Paige Fertitta, has taken the reins at Fertitta Entertainment while he is away.The Nevada Gaming Control Board gave the green light for Fertitta to be a hands-off investor. Still, his unhappiness points to ongoing friction between a key shareholder and Wynn’s top brass.