Casino mogul Steve Wynn has gone to war with his former friend and major investor, Kazuo Okada. Wynn has put Okada on the defensive by moving to buy him out and remove him as a director from his casino company. But it is unclear if Wynn will win the battle but lose the war.
Indeed, the falling-out between the two tycoons could impact their respective multibillion-dollar gambling empires. (Okada made his fortune in pachinko machines, a Japanese gambling device that is a combination of pinball and a slot machine.) Each claims the other made improper payments to win favor in their respective Macau and Philippines casino markets. The dueling lawsuits has caught the attention of federal authorities, prompting the Securities and Exchange Commission to open a probe.
Reuters has a good take here. Meanwhile, The Wall Street Journal reports that Wynn was prompted to act to appease Nevada gaming regulators after learning that Okada allegedly made improper payments to officials in the Phillipines. Details of the payments are part of an internal report Wynn commissioned that was done by Former FBI director Louis Freeh. Read Freeh’s report here.
Of course, Okada fired the first shot by questioning $135 million in donations that Wynn made to a university in Macau, a booming casino market. After Okada’s suit was filed, an analyst invoked The Godfather by asking Wynn if he going to make Okada “an offer he can’t refuse.” Well, it looks like Wynn has decided to “go to the mattresses.”
Is it just a coincidence that such ganster phrases seem to pop up when discussing casino moguls?
