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Nevada gambling regulators levied their largest fine in the state's history against Wynn Resorts Ltd. after the Las Vegas company admitted that it systematically ignored employees' sexual-misconduct allegations against founder and former chief executive Steve Wynn.

The Nevada Gaming Commission approved the $20 million fine in a 4-0 vote on Tuesday. The amount is almost four times larger than any previous fine by state gambling regulators.

Last month, the Nevada Gaming Control Board published a complaint against Wynn Resorts. State authorities said the probe was prompted by a Wall Street Journal article last year detailing sexual-misconduct allegations against Mr. Wynn.