Wynn settlement deal involved paternity claim: report

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Las Vegas reacts to Steve Wynn allegations

Hotel and casino mogul Steve Wynn is weathering a storm of sexual misconduct allegations and it could affect his brand.

Gaming mogul Steve Wynn's $7.5 million payment to a former employee involved a paternity claim, according to a published report.

Wynn made the payment in 2005 to avoid distractions for his company, people familiar with the situation told Bloomberg. The sources requested anonymity.

The paternity claim could explain why Wynn paid the former employee such a large sum, the report said. But terms of the settlement are private, so questions abound.

There’s no evidence Wynn, 76, fathered a child in the encounter.

However, the settlement has become a key element of the sexual misconduct controversy surrounding Wynn, Bloomberg reported.

The Wall Street Journal reported Jan. 26 that the woman who received the settlement worked as a manicurist at the Wynn Las Vegas resort, and had told people she was pressured into having sex with him.

The manicurist didn’t respond to attempts by Bloomberg to reach her by phone, mail and third parties.

Wynn Resorts’ board has since launched an independent investigation. Regulators in Nevada, Macau and Massachusetts have said they’re also looking into the matter, with the Massachusetts Gaming Commission investigating why the settlement wasn’t previously disclosed, Bloomberg reported. Their investigation could jeopardize the company’s $2.4 billion casino under construction in the Boston area.

A Wynn Resorts spokesman told Bloomberg that neither the company nor Wynn himself would comment.

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