The two were arrested last Friday evening after police pulled over their vehicle outside of Wynn Las Vegas Resort and Casino after allegedly leaving the nightclub and according to the reports police noticed the vehicle smelled of marijuana.

Wynn has a strict no tolerance policy and announced Wednesday that Cy Waits, the new managing partner of Wynn’s nightclub operations at both Tryst and XS has been “separated” from the company following his arrest for suspicion of misdemeanor driving under the influence of alcohol or drugs.

Wynn also released a press statement on Wednesday stating that drugs will not be tolerated and Socialite Paris Hilton had been banned from both Wynn Las Vegas and Wynn Encore following her arrest inside the Resort. While Hilton is claiming her innocence she was charged with felony cocaine possession.

Wynn Resorts was reported to have bought out managing partner Victor Drai from their nightclub venues last week as Drai prepares to take over nightclub operations at rival Harrah’s Entertainment. Waits and his brother were both appointed as Chiefs of Operations to head Tryst at Wynn Las Vegas and XS at Encore.

Wynn Resorts was said to have a “zero-tolerance policy” which would have been the reasons behind the firing of Cy Waits after being arrested Friday night with girlfriend Paris Hilton on charges of Driving under the Influence of Alcohol and Drugs.

Wynn’s spokeswomen Jennifer Dunne said that Wynn was not prepared to comment on the arrests or the future of Waits in their organization at this time.

Dunne said that the matter was under review and that a statement would be released at a later date.

In 2007, Joe Francis lost $2.8 million at the casino and had only repaid $800,000. The lack of payment prompted a 2008 lawsuit by Wynn Resorts. Over the years Francis and casino owner Steve Wynn have battled back and forth in court over claims of intimidation, threats of violence and slander.

Last year a Judge ruled that Francis was responsible for the debt, a ruling that he has appealed.

The new case claims that Francis had a deal with the casino that included a discount on gambling losses, however the casino is not applying that agreement to the $2 million debt.

Court documents say that Francis was not informed that the high roller discount had been rescinded and is asking the court to force Wynn Las Vegas to uphold the agreement that would discount his debt.

“Obviously, this lends itself in a positive way to Wynn’s legacy as a trendsetter in the culinary field in Vegas,” commented E.C. Gladstone a Vegas food critic.

While gourmet chiefs have shaken the menu up a bit at finer restaurants along the strip for several years now, Steve Wynn’s newest policy applies to all dining facilities at his Las Vegas resorts from five star formal dining to all you can eat buffets and round the clock delis off the casino floors.

David Snyder, executive chef of Wynn’s eateries said that Vegetarian dishes have always been available at Wynn Resorts, and while on a smaller scale some Vegan dishes have been as well. The difference now is that Wynn Resorts is requiring all of their eateries to offer strict Vegan dishes on the menu instead of by special request.

While Vegans, who do not eat any food source from animals including fish, dairy products and eggs only make up approximately 1% of the U.S. population they now can enjoy the fast pass of Vegas while maintaining their dietary ideals.

According to Citigroup analyst Anil Daswani, the casino operator dropped below four of its five rivals in the Chinese territory accounting for only 13% of the casino market as of August 15.

Daswani said the reports were “somewhat disappointing for an operator who opened a new property just three months ago” referring to Encore Macau which opened in April.

While Wynn Macau might not be on top, the fast passed growth of Macau has driven gambling revenue for Wynn up more than 50% during the first two quarters.

Wynn Macau reported Friday that its net profits for the first half of the year was up from HK$903.7 million in 2009 to HK$1.91 billion or US$245.7 million, with operating revenue up 52% to HK$10.1 billion.

Wynn Macau was not recommending a dividend payment for the first half of the year.

An appeal on the decision was expected, and was officially filed this week in the Clark County District Court. The dealers involved in the case are seeking that the judge over turn the commissioners ruling.

The controversial tip pooling case has been in and out of courts for the past four years, with the first class action lawsuit dismissed by the District Court until the Labor Board reviewed the case.

In the appeal, the attorney representing the dealers claim that the Commissioners decision was in violation of constitutional and statutory provisions.

The case is not expected to be settled until the later part of the year, with filing expected in response from both Wynn Resorts and the Labor Commissioner whose decision is being challenged.

Sachs raised its price target on shares of WYNN from $88 to $97 and quarterly estimates that look to growth in 2012, while maintaining a “Neutral” rating.

Goldman Sachs is predicting EPS estimates of $0.54 for 2011 Q1, $0.58 for 2011 Q2, $0.57 for 2011 Q3 and $0.67 for 2011 Q4. For 2012 Goldman Sachs estimates EPS earnings to more than double to $1.78 for 2012 Q1, $2.37 for 2012 Q2, and $3.23 for 2012 Q3.

For the second quarter Wynn Resorts reported revenue of $1 billion, of which $318.2 million came from Las Vegas casino operations that were up 1.7% during the period ending June 30.

Wynn Las Vegas and Wynn Las Vegas Capital Corp. have closed its offering on aggregated principal amounts of 7.75% first mortgage notes due 2020.

Note holders were offered an additional $30 consent payment if closed with Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc before August 3.

Wynn will use the proceeds to refinance existing debt.

During today’s trading session shares of Wynn Resorts rose 1.35% to close at $91.53. So far this month Wynn has hit a high of $92.44 on Thursday August 5, its highest stock price since the end of April.

Wynn traded at a low of $87.71on Tuesday August 3.

According to the quarterly earnings report, Wynn’s casino properties in Macau brought in $174.4 million, making up more than 71% of the company’s total revenue. In Macau VIP table games saw an increase of 72% to $21.7 billion with house wins totaling 3.2%.

Revenue in Las Vegas was also up 1.7% for the quarter to $318.2 million.

Wynn’s total revenue for the quarter came in at $1 billion or $0.42 per share, matching closely to the $0.41 per share that analysts had predicted.

Steve Wynn told investors and analyst on yesterday’s conference call that they have just completed the design for the new Cotai Strip project that should break ground next year. Wynn says there will even be an extra 12 acres remaining for future expansion.

Wynn also said that they would be remodeling and redesigning Wynn Las Vegas.

Wynn will pay shareholders of record through August 12 a cash dividend payment of $0.25 per share on August 26.

Analysts with the firm told clients today that they are expecting Wynn to report strong quarterly earnings after the market closes today with more than three quarters of its earnings being derived from the Macau casino market.

Gambling revenue in Macau has surpassed that of Las Vegas even before economic conditions began to take a hold of strip operations.

Wynn opened the first integrated resort, Wynn Macau, in 2006 and has continually benefited from the regions fast growth with Encore at Wynn Macau opening earlier this year. Wynn is also preparing to break ground on a new casino development on the Cotai strip next year.

During the first quarter Wynn reported that half of the company’s income came from Macau where revenue rose 32% to $590.6 million, while revenue in Las Vegas only increased 9.3%.

Wynn is expected to post quarter 2 financials before the market opens on Thursday July 29.

In the previous period, Wynn reported revenue up 23% to $908.9 million helped largely from strong gains in Macau. Net income for the period reached $27 million. Wynn beat analysts’ estimates of $0.17 a share with income excluding one-time items reaching $0.26 a share.

While Macau casino operations have seen a large increase in gambling revenue this year, the market peaked in May and may not have a significant impact to offset the revenue decline in Las Vegas.

Although shares of WYNN opened the market yesterday up $0.46, during the session dropped $1.11 to close at $87.53. The stock is however back on the rise up 65% to $88.10 during the afternoon hours ahead of earnings.

On Friday, Moody’s lifted Wynn to a Ba3 rating citing positive earnings prospects in Macau which tributes to more than half of the company’s revenue although they remain skeptical about the recovery of the Las Vegas market and challenges the number of gaming operations on the strip will have on traffic.

Moody was hopeful that the current notes offering could help Wynn reduce its amount of debt to a level worthy of an upgrade.

Both upgrades had shares of Wynn rising during the trading session, with shares up $2.20 to close Friday’s session at $87.68.

“The proposed transactions are leverage and liquidity neutral, but will further improve the company’s already attractive maturity profile,” Fitch said in a statement.

Fitch raised Wynn Resorts and subsidiary’s Wynn Las Vegas and Wynn Resorts Macau from their previous rating of “B+”, or highly speculative to a “BB-” or speculative rating.

Stronger than expected performance at Wynn Macau also led to the increased credit rating. Analysts have speculated that Macau gaming revenues were up by more than 75% through June as compared to Las Vegas where gaming revenues were only up 4.4% through May.

The upgrade sent shares of Wynn Resorts up $4.04 to a high of $86 during the afternoon trading session on Thursday and shares continue to rise while investors wait for Wynn to release full Q2 results on July 29.

During the second quarter Wynn laid-off 220 hourly workers and 41 salaried employees from its Las Vegas casinos but restored full time hours to 2,300 employees and restored salary reductions to 1,400 employees which added an additional $7.7 million to the payroll.

Wynn said in a preliminary earnings announcement that although net revenue was up by 1.7% to $318 million and occupancy rates rose to 92.6% the additional cost has widened operating losses to $17.2 million.

In the previous quarter Wynn reported Net income totaling $27 million, or $0.22 per share.

Through its subsidiary Wynn Las Vegas LLC up to $1,317,990,000 in aggregated principal amount of outstanding 6 5/8% First Mortgage Notes due 2014 issued by Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp can be purchased by Wynn for $1,000 principal amount of notes.

The offer will expire on August 18 however note holders tendering their notes before August 3 will receive an additional $30 consent payment.

Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc will act as the exclusive dealer managers and solicitation agents.

Wynn will use the proceeds to refinance existing debt and finance the offer through approximately $1.32 billion of new debt financing.

As a special committee works to reach a compromise between the House and Senate bills proposing destination style casinos and slot machines at the state’s racetracks, Wynn Resorts has hired a public relations firm to promote a bid to develop in the state.

A casino proposal has not been released to the public but according to news reports from Boston, Wynn has been in talks with Joseph Fallon, the owner of Fan Pier, to develop a casino resort on a portion of his 12 acre site.

Wynn has also paid nearly $400,000 to a Boston lobbyist through a subsidiary, Development Associates LLC and hired public relations firm, Howell Communications to promote the bid.

During Monday’s after-hours session, the investment firm lowered the target price to $88.00 from the previous $93.00, while maintaining a Neutral rating on the stock.

While closing Monday’s trading session at $77.81 stock prices rose to high of $82.05 on Tuesday and has continued to increase to $83.17 during the morning hours today.

Shares of Wynn resorts have been showing support around $75.04 and resistance in the range of $85.14, with a 52 week high of $93.99 and a 52 week low of $31.68.

With the exception of the first week of July and one week in mid May, Wynn’s stock has been trading around the $80.00 range since early April.

So far this month Wynn’s lowest stock price came in on July 2 at $73.12 and a high of $82.05 on July 12.

In 2006, a group of dealers attempted to fight the policy that called for them to share tips with their immediate supervisors by filing a class action lawsuit; only to have a Nevada judge dismiss the case, sending it to the Labor Commissioner. The group appealed the ruling but it was upheld by the Supreme Court in 2008.

This week, Commissioner Michael Tanchek ruled that the policy did not violate state labor laws.

According to an attorney representing the dealers, the Commissioners ruling did not properly address the dealers concerns that the tip sharing policy violates state laws regulating table games.

“We disagree with the ruling in terms of the law,” attorney Jay Litman said. “He addressed issue of labor but failed to address issues related to the control of gaming.”

The group has said that they will appeal the finding to the Nevada District Court, and if need be continue appealing until the case reaches the Supreme Court.

Scott Peterson, senior vice president and chief financial officer of Wynn was among the representatives being interviewed during the hearings. Peterson told the board that with market conditions still low, the resorts nightclubs have helped to sustain business with revenue percentages outperforming all other revenue streams at the resort.

“We’re making less now than we were three years ago when we only had one property.” Peterson said, stressing that the company’s Macau resort was also helping to maintain the company.

Matt Maddox, chief financial officer of Wynn also came before the board for review and added that baccarat play was one of the strongest revenue sources of all casino games offered at the resort.

The Nevada Gaming Commission will consider the recommendations on July 22.

The high for the month was reached on Monday June 28 topping off at $89.64, shares have not peaked this high since May 4 when the stock hit $90.47.

The low for the month came in at $74.57 on Tuesday June 8 which was higher than the lowest price of $72.78 that was hit just 10 days earlier on May 25.

Investors expecting to see WYNN continue to decline in value purchased 1,000 now in-the-money calls at the July $80 strike for an average premium of $3.86 apiece. Put buyers at this strike price are positioned to profit should WYNN’s shares fall below the average break-even point to the downside at $76.14 by expiration day.

Bearish players also picked up another 1,000 puts at the lower July $75 strike for an average premium of $2.04 per contract. Hoping that the stock will slip beneath the effective break-even price of $72.96 by the July expiration date.

Pessimists fearing sharp share price erosion picked up 1,100 put options at the lower July $70 strike for an average premium of $0.97 apiece. The stock will need to trade below the average break-even point of $69.03 in order to profit on the July $70 strike.