Billionaire Steve Wynn has stepped down as Republican National Committee finance chairman, the committee's chairman said, a day after reports that the casino magnate had engaged in multiple instances of sexual harassment.
The decision may be a blow to the Republican Party's fundraising as it gears up for midterm elections in November.
"Today I accepted Steve Wynn's resignation as Republican National Committee finance chair," committee chairman Ronna Romney McDaniel said in a statement. Wynn's departure was first reported by Politico.
Wynn, the founder of Wynn Resorts Ltd., paid $7.5 million to settle claims brought by a former manicurist at his Las Vegas resort who said he pressured her to have sex with him, the Wall Street Journal said Friday. The report contained numerous other allegations of harassment and coercion by other women.
In a statement on Saturday confirming his departure, Wynn noted the "distraction" caused by allegations he termed "preposterous" a day earlier.
"The work we are doing to make America a better place is too important to be impaired by this distraction," Wynn said in the statement, which was reported by Politico. "I thank the president for the opportunity to serve."
The board of directors of Wynn Resorts met and formed a special committee comprised of independent directors to investigate the allegations, according to a statement issued by the board.
"The board is deeply committed to ensuring the safety and well-being of all of the company's employees and to operating with the highest ethical standards," it said in the statement.
Committee members said they first learned of the allegations from news reports. One, who asked not to be identified because he wasn't authorized to speak for the party, said that in his view the Republican Party couldn't keep Wynn in such a high-profile position given the nature of the accusations.
Under Wynn, the committee set a fundraising record in 2017 for a non-election year. It ended November with $33.5 million more in the bank than its Democratic counterpart, thanks in part to the big donors Wynn can attract.
"Most of the credit for the cash on hand advantage goes to chairwoman McDaniel and her team. But Wynn was certainly a part of the success. He will be hard to replace, especially mid-cycle," said Dan Eberhart, chief executive officer of oilfield services firm Canary LLC and a Republican fundraiser. "It's another worry the Republicans don't need."
The allegations come at a delicate time for the party, which needs to maintain its financial edge as it faces a wave of retiring House incumbents and an expensive Senate race in Florida.
The party is also struggling to improve its standing with women after its reputation was bruised last year in Alabama. Roy Moore, the party's candidate for what had been one of its safest Senate seats, lost after allegations arose that he had sexually assaulted a 14-year-old girl when he was in his mid-30s and had pursued other teenagers.
Republicans also have to contend with the fact that President Donald Trump, who personally asked Wynn to be the party's top fundraiser, came under fire in 2016 for a video in which he made lewd comments while taping the television program Access Hollywood in 2005. Separately, 19 women have accused the president of sexual misconduct.
As powerful men across an array of industries have been accused of harassing and abusing women, both parties have had to deal with misconduct allegations in their ranks. Democrats forced high-profile incumbents, including Sen. Al Franken of Minnesota and Rep. John Conyers of Michigan, to resign. Rep. Blake Farenthold, a Texas Republican, decided not to seek re-election after a report surfaced that he used $84,000 of taxpayer money to settle a sexual-harassment complaint brought by a former aide.
Republicans have been critical of Democrats for accepting money from the movie producer Harvey Weinstein, who was a prolific fundraiser for the party as well. In response to the allegations of sexual misconduct against Weinstein, McDaniel tweeted that returning his money "would be a no-brainer."
According to the Journal, which said it had contacted more than 150 people who worked with Wynn, he coerced the manicurist and massage therapists to perform sex acts for $1,000 tips.
In his statement denying the allegations, Wynn told the Journal that it was "deplorable for anyone to find themselves in this situation."
Information for this article was contributed by Klaus Wille and Sahil Kapur of Bloomberg News.
A Section on 01/28/2018