During its meeting on Wednesday, the Nevada Gaming Control Board (NGCB) will evaluate Tilman Fertitta’s appropriateness as a shareholder in Wynn Resorts (NASDAQ: WYNN), the casino company where he holds the largest investment.
This is a typical procedure since, according to Nevada law, investors with a minimum of 5% ownership in publicly traded gaming firms in the state must be assessed by the NGCB and be required to possess Nevada gaming licenses. Fertitta satisfies the latter requirement as three of his Golden Nugget casinos are gaming establishments in Nevada. Those locations can be found in Lake Tahoe, Las Vegas downtown, and Laughlin.
Currently the US ambassador to Italy, Fertitta will not participate in the NGCB meeting on June 11, and he will not join through conference call or online meeting nor is he required by law to do so. Steven Scheinthal, the top attorney at Fertitta Entertainment Inc., is expected to attend the meeting.
Scheinthal participated in recent NGCB and Nevada Gaming Commission (NGC) meetings concerning the licensing of Paige Fertitta — Tilman’s ex-wife — who has assumed leadership of the entertainment and leisure conglomerate while her ex-husband is in Italy.
Anticipate Inquiries Regarding Fertitta's Plans for Wynn
Over two years have passed since Fertita acquired a 6% stake in Wynn, causing a stir in the gaming sector and among investors. Since that time, his stake in the Encore operator has increased to 12.58%, firmly establishing him as the company’s largest shareholder.
Although Fertitta's appropriateness as a significant investor in Wynn is not expected to raise concerns, NGCB members might not be able to refrain from questioning Scheinthal or another Fertitta representative about their previous boss’s intentions for the Wynn investment.
These issues were discussed during a May NGCB meeting, where Schienthal mentioned that if Wynn management works to boost shareholder value, his superior is fine with it; however, he remarked, “we’ll see what happens,” which may have prompted Commissioner George Assad to further question the attorney about any discontent Fertitta might have with Wynn executives regarding the declining share price.
The attorney avoided that pitfall, choosing not to discuss his ex-boss’s sentiments regarding the 10.35% decline in Wynn shares over the last year.
Rumors of a Takeover Have Subsided
Maybe partly because of Fertitta’s role as an ambassador, the speculation about a possible Wynn takeover has decreased. Such talk spread quickly following the disclosure that the Houston Rockets became a Wynn investor in 2023.
Although his 12.58% stake in the company is sufficient to influence changes, Fertitta has not publicly indicated that he is seeking major actions like asset sales or a complete sale. Currently, his responsibilities might be too overwhelming to concentrate on a complicated, costly acquisition.
Several analysts on Wall Street had previously indicated that the likelihood of Fertitta purchasing Wynn was slim, stating that his main interest in the gaming firm was to promote growth and enhance the utilization of the operator's renowned brand.