Fertitta Lawyer Says He’ll Remain Passive Wynn Investor — For Now

• Comments made at Nevada Gaming Control Board (NGCB) meeting
• Lawyer said Fertitta wants to see Wynn take steps to create value for investors

A lawyer from Fertitta Entertainment told the Nevada Gaming Control Board (NGCB) the company wants to see Wynn Resorts (NASDAQ: WYNN) do right by investors, but didn’t go as far as saying Tilman Fertitta could turn to an active investor from a passive one in the gaming company.

At an NGCB meeting to discuss licensing for Paige Fertitta — Tilman’s ex-wife — Commissioner George Assad asked Steven Scheinthal, executive vice president and general counsel at Fertitta Entertainment, about that company’s stake in Wynn Resorts.

So as long as we believe that management is engaged in the right steps to provide value to the shareholders, I think we’re OK with that. We’ll see what happens,” said the lawyer in response to a question from Assad.

The NGCB meeting took place about a month after a Form 4 filing with the Securities and Exchange Commission (SEC) revealed that Tilman Fertitta — now the former head of the entertainment and leisure company bearing his name — upped his equity stake in Wynn to nearly 13%, making him the largest shareholder in that gaming operator.

Fertitta is now the US ambassador to Italy, meaning he’s not involved with the day-to-day operations of Fertitta Entertainment. The NGCB recommended licensing for Paige Fertitta, 66, which is pertinent because the Golden Nugget casino portfolio, of which three operate in Nevada, is part of Fertitta Entertainment.

Rumors Abound Regarding Fertitta’s Wynn Interest

It appears that unidentified media reports suggesting Fertitta is displeased with Wynn’s handling of its share price were the impetus for Assad’s line of inquiry. The stock is down 13% over the past 12 months and 2.37% year to date.

Scheinthal declined to answer a question from the commissioner regarding his former boss’s pleasure or displeasure with Wynn management, but did reiterate that the ambassador and Houston Rockets owner remains a passive investor in Wynn.

That goes a long way toward explaining the oft-mentioned takeover rumors, but Wall Street analysts have widely scoffed at the notion that Fertitta will move to acquire Wynn outright. Rather, the prevailing sentiment within the sell-side community is that if Fertitta were to turn activist with Wynn, it would be in effort to potentially drive domestic expansion, not take control of the operator.

Over Near Term, Fertitta/Wynn Rumors Don’t Mean Much

In February, Wynn said it has had positive dialogue with Fertitta and remains engaged with him, as it does with all of its shareholders. As for the investor, his plate is full with his ambassador duties, running the Rockets, and providing counsel to Paige and other executives on important decisions at his company.

Scheinthal told the NGCB that Fertitta retains some oversight of important decisions and capital spending at Fertitta Entertainment.

The lawyer added that a reality television series involving the Golden Nugget is in the works. Fertitta has been down that road before, serving as the star of CNBC’s “Billion Dollar Buyer” for three seasons. It’s not clear if he’ll be featured in the new show.