Wynn Ma, Llc Applicant for a Category 1 Gaming License
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WYNN MA, LLC APPLICANT FOR A CATEGORY 1 GAMING LICENSE PURSUANT TO M.G.L. c 23K; REPORT OF SUITABILITY OF APPLICANT ENTITIES AND INDIVIDUAL QUALIFIERS PURSUANT TO 205 CMR 101 et seq. December 6, 2013 For use of the Massachusetts Gaming Commission internal circulation only. Unauthorized disclosure, distribution or copying of this report is prohibited and is a violation of M.G.L. c 23K and the regulations promulgated thereunder. TABLE OF CONTENTS I. INTRODUCTION .................................................................................................... 4 II. SCOPE AND METHODOLOGY ............................................................................ 5 III. IDENTIFICATION OF APPLICANT ................................................................... 10 IV. APPLICANT SITE ................................................................................................. 13 V. DESCRIPTION OF APPLICANT’S OWNERSHIP.............................................. 14 VI. SIGNIFICANT ISSUES ......................................................................................... 15 A. MACAU ........................................................................................................ 16 B. OKADA ......................................................................................................... 42 C. THE HISTORICAL OWNERSHIP OF THE PROJECT LAND BY FBT EVERETT REALTY, LLC ............................................................ 48 D. WYNN RESORTS CASINO GAMING OPERATIONS IN LAS VEGAS . 89 VII. APPLICANT ENTITY AND INDIVIDUAL PERSON QUALIFIERS SUITABILITY SUMMARY OF FINDINGS ................................ 96 A. ENTITY QUALIFIERS ................................................................................ 96 1. WYNN MA, LLC ................................................................................... 96 2. WYNN RESORTS, LIMITED ............................................................... 98 B. INDIVIDUAL PERSON QUALIFIERS ..................................................... 101 1. STEPHEN A. WYNN ........................................................................... 101 2. MATTHEW O. MADDOX .................................................................. 109 3. KIMMARIE SINATRA ....................................................................... 112 4. JOHN STRZEMP ................................................................................. 116 5. ALVIN V. SHOEMAKER ................................................................... 120 6. D. BOONE WAYSON ......................................................................... 124 7. ROBERT J. MILLER ........................................................................... 129 8. ELAINE P. WYNN .............................................................................. 134 9. DR. RAY R. IRANI .............................................................................. 139 10. J. EDWARD VIRTUE .......................................................................... 143 11. JOHN J. HAGENBUCH ....................................................................... 146 VIII. CONCLUSION AND FINDINGS ....................................................................... 150 For use of the Massachusetts Gaming Commission internal circulation only. Unauthorized disclosure, distribution or copying of this report is prohibited and is a violation of M.G.L. c 23K and the regulations promulgated thereunder. 2 EXHIBIT 1...................................................................................................................... 151 EXHIBIT 2...................................................................................................................... 154 EXHIBIT 3...................................................................................................................... 155 EXHIBIT 7...................................................................................................................... 160 EXHIBIT 8...................................................................................................................... 165 EXHIBIT 9...................................................................................................................... 166 EXHIBIT 10.................................................................................................................... 167 EXHIBIT 11.................................................................................................................... 168 EXHIBIT 12.................................................................................................................... 171 EXHIBIT 13.................................................................................................................... 177 EXHIBIT 14.................................................................................................................... 179 EXHIBIT 15.................................................................................................................... 181 EXHIBIT 16.................................................................................................................... 183 EXHIBIT 17.................................................................................................................... 185 EXHIBIT 18.................................................................................................................... 186 EXHIBIT 19.................................................................................................................... 188 EXHIBIT 20.................................................................................................................... 190 EXHIBIT 21.................................................................................................................... 192 EXHIBIT 22.................................................................................................................... 194 EXHIBIT 23.................................................................................................................... 196 For use of the Massachusetts Gaming Commission internal circulation only. Unauthorized disclosure, distribution or copying of this report is prohibited and is a violation of M.G.L. c 23K and the regulations promulgated thereunder. 3 I. INTRODUCTION After a formal public Request for Proposals in approximately October 2012, the firm of Michael and Carroll, PC (“M&C”) and its agents and affiliated professionals were selected and then retained by the Massachusetts Gaming Commission (“MGC”) to assist the Commission’s Investigations and Enforcement Bureau (“IEB”) in conducting thorough, yet expedited, due diligence and background investigations of numerous entities and individual qualifiers for each respective assigned applicant. The investigation was given a tight and intense timetable, yet had to be as comprehensive as feasible. In order to meet these requirements, M&C utilized the services of field investigators, financial investigators, certified public accountants, database specialists, attorneys with extensive experience in gaming regulation and other support professionals. This staff included former FBI agents and supervisors, former State Police from other jurisdictions, former Attorney General’s investigators, former state and tribal regulatory officials and former criminal prosecutors. This experienced staff was teamed with investigative personnel from the Massachusetts State Police assigned to the Gaming Enforcement Unit, and the IEB Director and staff. These suitability investigations constitute Phase 1 of MGC’s casino selection process and focus on this applicant’s background in terms of good character, honesty, integrity and financial responsibility. This report contains the factual findings and analysis of those elements of the applicant’s background critical for the MGC to make an informed decision regarding suitability. The applicant’s origin, ownership and table of organization are discussed below in detail. While the IEB reasonably believe that this applicant has made a significant effort to confirm that this is the final organizational framework for the applicant’s company that will oversee its planned gaming facility construction and operational logistics, M&C’s long experience in the gaming industry and in government suggests that some variation may still occur. Any material deviation that could affect the suitability of the applicant or any of its individual person qualifiers will be immediately identified and closely monitored. As warranted, the IEB will take all appropriate action to assure that any potential deviations from the applicant’s present intention are fully vetted to the established statutory and regulatory standards. Moreover, if the applicant does advance in the established MGC project suitability and evaluative processes, additional For use of the Massachusetts Gaming Commission internal circulation only. Unauthorized disclosure, distribution or copying of this report is prohibited and is a violation of M.G.L. c 23K and the regulations promulgated thereunder. 4 investors and financial participants will, in the IEB’s considered view and in conjunction with the Director of the IEB, also be identified and added. Any such new participants in the applicant’s project will likewise be vetted to the appropriate established standards and law. Finally, in addition to the applicant and related qualifying entities, this document also reports herein on all of the qualifying individuals. The specific sections of this report