UPDATE 1-Wynn Resorts in Massachusetts allowed to drop Wynn from license

(Adds details on ruling, comment from Steve Wynn's lawyer)

BOSTON, May 7 (Reuters) - Massachusetts' gambling regulator on Monday said it will allow Wynn Resorts Ltd to remove founder Steve Wynn's name from its license for a planned $2.5 billion casino following allegations that Wynn subjected women who worked for him to unwanted sexual advances.

The Massachusetts Gaming Commission's decision came as state regulators investigate the allegations as part of a process that could affect whether Wynn Resorts continues to be deemed suitable to retain its 2014 casino license.

The five-member commission ruled that Wynn no longer be considered a "qualifier" for the purposes of its license upon confirmation that he did not exercise voting rights at the company's upcoming May 16 shareholders' meeting.

Qualifiers generally include top executives but can include people with close business associations with a licensee and must pass a background check.

"We are pleased with the Gaming Commissions decision and look forward to having nothing further to do with this matter," Brian Kelley, a lawyer for Wynn at the law firm Nixon Peabody, said in a statement.

Wynn Resorts did not immediately respond to a request for comment. (Reporting by Nate Raymond in Boston; editing by Leslie Adler and Jonathan Oatis)