When Steve Wynn purchased the former Alon / Frontier land last month nobody really knew what he was going to do with it. The common thought was that Wynn would sit on the land and save it for development sometime in the distant future.
Turns out Steve wants to build, and build fast. Wynn Resorts wants to develop this land (along with their Golf Course / Paradise Park project) as fast as possible and is going full speed ahead on Las Vegas development.
Wynn will be building a two to three thousand room new hotel on the Alon land in a project they are calling West Wynn. Steve has been thinking about this project for a long time, and always thought he would end up acquiring the property.
The West Wynn property (or is it Wynn West?) will be connected to Wynn proper via an air conditioned walkway over the Las Vegas Strip.
Steve Wynn's bullishness on Las Vegas seems to be sparked by the new tax reform bill, along with the company's strong results in Macau.
With Wynn looking to build, this could be the much needed boost for the North Strip we've been waiting for. If Resorts World and Fontainebleau (now Project Blue) get underway the North Strip could become a lot more exciting.
Showing posts with label Steve Wynn. Show all posts
Showing posts with label Steve Wynn. Show all posts
Tuesday, July 25, 2017
Wynn Second Quarter 2017 Earnings
Wynn Resorts released second quarter 2017 earnings today and held their earnings conference call. Revenue and net income were both up year over year due to the addition of Wynn Palace in Macau and helped by higher hold percentage in both Las Vegas and Macau.
Steve Wynn discussed the plans for the redevelopment of the Wynn golf course in Las Vegas. It appears that plans for the course are on track and drawings are being finalized.
The golf course will be redeveloped to include a lagoon along with new hotel rooms and convention space.
Steve Wynn commented that this land is extremely valuable due to its proximity to the Las Vegas Convention Center along with the Sands Expo Center.
Wynn also updated operations in Macau. Wynn Palace is doing well but is currently being somewhat adversely affected by construction at the neighboring MGM Cotai resort being built.
Back stateside Wynn Boston Harbor opening date will be in 2019 with construction now well underway. The company is also buying more property in the Boston / Everett area with an eye on future expansion.
Steve Wynn discussed the plans for the redevelopment of the Wynn golf course in Las Vegas. It appears that plans for the course are on track and drawings are being finalized.
The golf course will be redeveloped to include a lagoon along with new hotel rooms and convention space.
Steve Wynn commented that this land is extremely valuable due to its proximity to the Las Vegas Convention Center along with the Sands Expo Center.
Wynn also updated operations in Macau. Wynn Palace is doing well but is currently being somewhat adversely affected by construction at the neighboring MGM Cotai resort being built.
Back stateside Wynn Boston Harbor opening date will be in 2019 with construction now well underway. The company is also buying more property in the Boston / Everett area with an eye on future expansion.
Thursday, May 05, 2016
MGM Wynn and Caesars Talk Results
It was a bonanza of Las Vegas casino company earnings results today. MGM, Wynn, and Caesars all reported their first quarter 2016 results and held earnings conference calls.
MGM Resorts International focused on the Profit Growth Plan (PGP) during their conference call. PGP is the company's plan to increase profits by correcting inefficiencies in the operation. Examples would be consolidating linens and toiletries across all of the company's properties instead of using 14 different types. PGP is also the program responsible for MGM's upcoming parking garage fees. There wasn't much Las Vegas development news this time, but CEO Jim Murren further hinted at the upcoming re-branding of the Monte Carlo. He mentioned that the new Monte Carlo theater would host "A+ residency acts."
Steve Wynn spent much of the Wynn Resorts earnings call talking about the proposed Wynn Paradise Park development. Wynn mentioned that the lagoon coastline was already being expanded by 600 feet, and that zip-lines would be an available attraction. Wynn Paradise Park will have a 1000 room hotel with balcony rooms facing the lagoon and fireworks show. Steve Wynn thinks these balcony rooms will be the most sought-after in all of Las Vegas.
Caesars Entertainment held their earnings conference call at the same time as Wynn's. I guess when you're going through a bankruptcy you want as little attention as possible - and it worked since only one analyst asked a question in the 30 minute call. Operationally, Caesars highlighted strong trends in occupancy and ADR due in part to room renovations. Caesars also talked about their new self service check-in kiosks. Entertainment and dining offerings were also seen as a positive, with In-N-Out Burger coming to the Linq Promenade being the most exciting.
MGM Resorts International focused on the Profit Growth Plan (PGP) during their conference call. PGP is the company's plan to increase profits by correcting inefficiencies in the operation. Examples would be consolidating linens and toiletries across all of the company's properties instead of using 14 different types. PGP is also the program responsible for MGM's upcoming parking garage fees. There wasn't much Las Vegas development news this time, but CEO Jim Murren further hinted at the upcoming re-branding of the Monte Carlo. He mentioned that the new Monte Carlo theater would host "A+ residency acts."
Steve Wynn spent much of the Wynn Resorts earnings call talking about the proposed Wynn Paradise Park development. Wynn mentioned that the lagoon coastline was already being expanded by 600 feet, and that zip-lines would be an available attraction. Wynn Paradise Park will have a 1000 room hotel with balcony rooms facing the lagoon and fireworks show. Steve Wynn thinks these balcony rooms will be the most sought-after in all of Las Vegas.
Caesars Entertainment held their earnings conference call at the same time as Wynn's. I guess when you're going through a bankruptcy you want as little attention as possible - and it worked since only one analyst asked a question in the 30 minute call. Operationally, Caesars highlighted strong trends in occupancy and ADR due in part to room renovations. Caesars also talked about their new self service check-in kiosks. Entertainment and dining offerings were also seen as a positive, with In-N-Out Burger coming to the Linq Promenade being the most exciting.
Monday, April 25, 2016
New Wynn Paradise Park Lagoon Details
A few weeks ago I wrote a blog post about Wynn Paradise Park - the new proposed development by Wynn Resorts which will include a 1000 room hotel with a large man-made lagoon as a centerpiece attraction.
Today a press release was issued giving more details about the project. The lagoon will be constructed by a Miami based company called Crystal Lagoons.
"A 38-acre Crystal Lagoon will be the centerpiece of the development that will feature 260,000 square feet of premium meetings and convention space, a 1,000-room hotel tower, a small casino and extensive dining and nightlife. The elaborate water attraction will include both daytime and nighttime entertainment elements. At night, the space will transform with an elaborate fireworks display that is launched from the 120 ft. center island and surrounding areas. The expansion will be constructed on approximately 130 acres of real estate that currently houses the Wynn Golf Club. The project remains subject to the approval of Wynn's board.
The man-made lagoon with crystal-clear waters and white-sand beaches will be the size of more than 30 football fields and close to the size of almost 100 Olympic-size swimming pools. The new Crystal Lagoon will change the Las Vegas lifestyle with by making water sports readily available, such as stand-up paddle-boarding, wind-surfing, sailing, swimming and more."
Also notable from the press release was information touting the environmental sustainability of the project. The lagoon would use significantly less water than the current golf course.
It certainly looks like an impressive project, and if the sample image below is any indication it will be a great place to hang out. New outdoor spaces are a trend in Las Vegas with The Linq and The Park developments recently opening. Wynn Paradise Park would take the outdoor entertainment concept to the next level.
In my blog post a few weeks ago I was pretty skeptical about the project actually happening, but now that we have more details I think it would be a great expansion. If anyone can pull it off Steve Wynn is that guy.
Image: Crystal Lagoons
Today a press release was issued giving more details about the project. The lagoon will be constructed by a Miami based company called Crystal Lagoons.
"A 38-acre Crystal Lagoon will be the centerpiece of the development that will feature 260,000 square feet of premium meetings and convention space, a 1,000-room hotel tower, a small casino and extensive dining and nightlife. The elaborate water attraction will include both daytime and nighttime entertainment elements. At night, the space will transform with an elaborate fireworks display that is launched from the 120 ft. center island and surrounding areas. The expansion will be constructed on approximately 130 acres of real estate that currently houses the Wynn Golf Club. The project remains subject to the approval of Wynn's board.
The man-made lagoon with crystal-clear waters and white-sand beaches will be the size of more than 30 football fields and close to the size of almost 100 Olympic-size swimming pools. The new Crystal Lagoon will change the Las Vegas lifestyle with by making water sports readily available, such as stand-up paddle-boarding, wind-surfing, sailing, swimming and more."
Also notable from the press release was information touting the environmental sustainability of the project. The lagoon would use significantly less water than the current golf course.
It certainly looks like an impressive project, and if the sample image below is any indication it will be a great place to hang out. New outdoor spaces are a trend in Las Vegas with The Linq and The Park developments recently opening. Wynn Paradise Park would take the outdoor entertainment concept to the next level.
In my blog post a few weeks ago I was pretty skeptical about the project actually happening, but now that we have more details I think it would be a great expansion. If anyone can pull it off Steve Wynn is that guy.
Image: Crystal Lagoons
Thursday, April 07, 2016
Wynn Paradise Park Lagoon
Wynn Resorts held an investor day presentation yesterday. In an effort to share more about upcoming projects Wynn addressed investors for two and a half hours, and the company released a ton of renderings of the upcoming Wynn Palace Macau and Wynn Boston.
Many topics were discussed, but the item grabbing all the headlines is the plan to redevelop the golf course behind Wynn and Encore in Las Vegas. The new project could have a budget as high as $1.6 billion and would include a hotel, small casino, restaurants and retail.
The centerpiece of Wynn Paradise Park would be a large lagoon where guests could partake in a variety of water activities. The company would also plan to launch fireworks over the lagoon every night, just like at Disney.
Even with this model of what Wynn Paradise Park would look like, I'm still skeptical of this actually happening anytime soon. If it does get built I'm guessing the lagoon will be scaled down a bit. Something about building a huge lake in the middle of drought-ridden desert just doesn't feel right. I know what you're going to say - Wynn already did it a Bellagio. True, but this looks like a much bigger undertaking.
Either way, a project like this just underscores the continued expansion of non-gaming activities in Las Vegas. Even though the new hotel will have a casino, it's clear the focus will be on dining, shopping, and the lagoon attraction. Wynn Paradise Park would fit right in with the new outdoor spaces on the Strip - Caesars Entertainment's The Linq and MGM's The Park.
Each one of these features a main attraction to bring people in - the High Roller wheel at The Linq, T-Mobile Arena at The Park, and now the lagoon at Paradise Park.
Many topics were discussed, but the item grabbing all the headlines is the plan to redevelop the golf course behind Wynn and Encore in Las Vegas. The new project could have a budget as high as $1.6 billion and would include a hotel, small casino, restaurants and retail.
The centerpiece of Wynn Paradise Park would be a large lagoon where guests could partake in a variety of water activities. The company would also plan to launch fireworks over the lagoon every night, just like at Disney.
Even with this model of what Wynn Paradise Park would look like, I'm still skeptical of this actually happening anytime soon. If it does get built I'm guessing the lagoon will be scaled down a bit. Something about building a huge lake in the middle of drought-ridden desert just doesn't feel right. I know what you're going to say - Wynn already did it a Bellagio. True, but this looks like a much bigger undertaking.
Either way, a project like this just underscores the continued expansion of non-gaming activities in Las Vegas. Even though the new hotel will have a casino, it's clear the focus will be on dining, shopping, and the lagoon attraction. Wynn Paradise Park would fit right in with the new outdoor spaces on the Strip - Caesars Entertainment's The Linq and MGM's The Park.
Each one of these features a main attraction to bring people in - the High Roller wheel at The Linq, T-Mobile Arena at The Park, and now the lagoon at Paradise Park.
Thursday, February 11, 2016
Wynn Boston Opening Late 2018
Wynn Resorts reported fourth quarter and full year 2015 earnings results earlier today. The results were down from last year due to continued weakness in the Macau market, and lower gaming in Las Vegas.
Despite the lower earnings Steve Wynn seemed fairly positive on the company's earnings conference call. He said Las Vegas results so far in 2016 have been strong, calling it "Apple pie shaped" - whatever that means.
Steve Wynn has been personally buying a good amount of Wynn Resorts stock lately. He gave a fairly extensive list of why he's buying the stock citing "latent" Las Vegas assets, namely a new shopping esplanade which will replace the old Ferarri showroom.
Wynn revealed the projected opening date for the Everett / Boston project. The resort will fully break ground in April 2016 and be completed 30 months from then - in late fall 2018.
Despite the lower earnings Steve Wynn seemed fairly positive on the company's earnings conference call. He said Las Vegas results so far in 2016 have been strong, calling it "Apple pie shaped" - whatever that means.
Steve Wynn has been personally buying a good amount of Wynn Resorts stock lately. He gave a fairly extensive list of why he's buying the stock citing "latent" Las Vegas assets, namely a new shopping esplanade which will replace the old Ferarri showroom.
Wynn revealed the projected opening date for the Everett / Boston project. The resort will fully break ground in April 2016 and be completed 30 months from then - in late fall 2018.
Wednesday, December 09, 2015
Steve Wynn Buys his own Stock
Steve Wynn has never lacked self confidence. It should be little surprise that he made a big bet on himself, recently purchasing a little over 1 million shares of Wynn Resorts stock valued at just north of $60 million.
The news of the purchase sent WYNN stock up 13% earlier today, increasing a little over $8 a share to finish just shy of $70 a share.
The one million shares Wynn recently purchased now represent 9% of his total stake in the company. He now directly or indirectly owns 11.07 million shares worth around $775 million.
While many see Wynn's purchase as a strong buy signal, I'm not so sure. While Las Vegas results are strong because of lower gaming odds, Wynn's results are more centered around Macau.
I think Macau is going to be a strong casino market for the long term, but there are a lot of question marks in the short term. A slew of new resort openings will likely expand the market in the long run, but could put pressure on existing resorts in 2016 and 2017.
The news of the purchase sent WYNN stock up 13% earlier today, increasing a little over $8 a share to finish just shy of $70 a share.
The one million shares Wynn recently purchased now represent 9% of his total stake in the company. He now directly or indirectly owns 11.07 million shares worth around $775 million.
While many see Wynn's purchase as a strong buy signal, I'm not so sure. While Las Vegas results are strong because of lower gaming odds, Wynn's results are more centered around Macau.
I think Macau is going to be a strong casino market for the long term, but there are a lot of question marks in the short term. A slew of new resort openings will likely expand the market in the long run, but could put pressure on existing resorts in 2016 and 2017.
Saturday, November 28, 2015
New Resorts Opening in Macau Downturn
Encore, Aria, and Cosmopolitan are three of the newest casinos in Las Vegas. All three are considered successful, but they opened right in the middle of a severe slowdown in Las Vegas which didn't make things easy.
History might be repeating itself in Macau, as that city faces a downturn right as major properties are set to open. Studio City just opened, while Wynn Palace will be opening next year followed by The Parisian after that.
A recent New York Times article did a good job of chronicling some of the issues in Macau. The government restriction on table games at Studio City prompted Steve Wynn to show frustration. Macau's junket operators have also been under fire lately. A possible smoking ban could be another hurdle for Macau casinos.
I tend to be pretty optimistic on the future prospects in Macau. Somewhat like Las Vegas I think these new upcoming resorts might have a rough start but should find their footing eventually.
Even with the recent downturn Macau is still a much larger gaming market than Las Vegas. I think some of the government regulations will ease with time and these issues will be seen as minor growing pains. We shall see.
History might be repeating itself in Macau, as that city faces a downturn right as major properties are set to open. Studio City just opened, while Wynn Palace will be opening next year followed by The Parisian after that.
A recent New York Times article did a good job of chronicling some of the issues in Macau. The government restriction on table games at Studio City prompted Steve Wynn to show frustration. Macau's junket operators have also been under fire lately. A possible smoking ban could be another hurdle for Macau casinos.
I tend to be pretty optimistic on the future prospects in Macau. Somewhat like Las Vegas I think these new upcoming resorts might have a rough start but should find their footing eventually.
Even with the recent downturn Macau is still a much larger gaming market than Las Vegas. I think some of the government regulations will ease with time and these issues will be seen as minor growing pains. We shall see.
Wednesday, November 11, 2015
Fontainebleau For Sale - Who Will Buy?
The Wall Street Journal reported today that Carl Icahn is looking to sell the Fontainebleau. The property will be listed by CBRE for $650 million.
I immediately starting thinking about who might be a candidate to buy and finish the stalled Fontainebleau project. I'm going to spend the rest of this blog post speculating about which companies might be in the mix.
MGM Resorts International and Caesars Entertainment are the two largest Las Vegas hotel/casino companies but neither of them are really looking to expand in Vegas at the moment. Plus MGM will be completing a REIT conversion soon, and Caesars is going through a partial bankruptcy. I don't see either of these giants buying Fontainebleau.
Wynn Resorts boss Steve Wynn has long said he doesn't want to build in Las Vegas again. His frustration with the Macau government and endless headaches getting his Boston project off the ground might have him singing a different tune though. The rub: Wynn likes to build from scratch and the Fontainebleau structure might not be a blank enough slate for architect DeRuyter Butler and designer Roger Thomas to work their magic.
Like Wynn, Las Vegas Sands and Sheldon Adelson have shown a lack of interest in building anything new in Vegas. I actually think the Fontainebleau would be a great fit though. LVS has deep pockets so finishing the resort wouldn't be a problem, and the location near the planned convention center expansion would fit right in with their convention heavy business model. The best part: They could call the property Sands Hotel and Casino resurrecting an iconic Las Vegas brand.
Speaking of iconic properties: Boyd Gaming has been looking to get back on the Strip ever since they demolished The Stardust and failed to replace it with Echelon Place, later selling the property. While I would be in favor of Boyd buying Fontainebleau and renaming it The Stardust (or Borgata Las Vegas perhaps?) it seems unlikely they would undertake such a large project so shortly after abandoning Echelon.
Penn National was seriously considering purchasing Fontainebleau before ultimately losing out to Carl Icahn. Since then they have entered the Las Vegas market with purchases of M Resort and later Tropicana. If Penn was unwilling to spend $150 million to buy Fontainebleau in 2010 I'm guessing they don't want to spend $650 million in 2015.
Treasure Island owner Phil Ruffin was in the news earlier this week as it was reported he made a recent $1.3 billion failed bid to buy The Mirage. If Ruffin has that much cash to spend could he possibly want to buy the Fontainebleau? It seems like a real possibility to me.
Other regional operators like Eldorado Resorts, Golden Entertainment, Full House Resorts, and Pinnacle Entertainment are likely eager to get into the Las Vegas market but probably don't have the money to make a deal like Fontainebleau happen. Could one of these companies partner up with a rich benefactor like Ruffin to get it done?
Lastly and perhaps most likely to buy Fontainebleau are private equity real estate companies. Cosmopolitan parent company Blackstone might be a possibility if they are looking to expand their casino holdings. Once rumored Mirage buyer Starwood Capital might also be looking to buy.
I immediately starting thinking about who might be a candidate to buy and finish the stalled Fontainebleau project. I'm going to spend the rest of this blog post speculating about which companies might be in the mix.
MGM Resorts International and Caesars Entertainment are the two largest Las Vegas hotel/casino companies but neither of them are really looking to expand in Vegas at the moment. Plus MGM will be completing a REIT conversion soon, and Caesars is going through a partial bankruptcy. I don't see either of these giants buying Fontainebleau.
Wynn Resorts boss Steve Wynn has long said he doesn't want to build in Las Vegas again. His frustration with the Macau government and endless headaches getting his Boston project off the ground might have him singing a different tune though. The rub: Wynn likes to build from scratch and the Fontainebleau structure might not be a blank enough slate for architect DeRuyter Butler and designer Roger Thomas to work their magic.
Like Wynn, Las Vegas Sands and Sheldon Adelson have shown a lack of interest in building anything new in Vegas. I actually think the Fontainebleau would be a great fit though. LVS has deep pockets so finishing the resort wouldn't be a problem, and the location near the planned convention center expansion would fit right in with their convention heavy business model. The best part: They could call the property Sands Hotel and Casino resurrecting an iconic Las Vegas brand.
Speaking of iconic properties: Boyd Gaming has been looking to get back on the Strip ever since they demolished The Stardust and failed to replace it with Echelon Place, later selling the property. While I would be in favor of Boyd buying Fontainebleau and renaming it The Stardust (or Borgata Las Vegas perhaps?) it seems unlikely they would undertake such a large project so shortly after abandoning Echelon.
Penn National was seriously considering purchasing Fontainebleau before ultimately losing out to Carl Icahn. Since then they have entered the Las Vegas market with purchases of M Resort and later Tropicana. If Penn was unwilling to spend $150 million to buy Fontainebleau in 2010 I'm guessing they don't want to spend $650 million in 2015.
Treasure Island owner Phil Ruffin was in the news earlier this week as it was reported he made a recent $1.3 billion failed bid to buy The Mirage. If Ruffin has that much cash to spend could he possibly want to buy the Fontainebleau? It seems like a real possibility to me.
Other regional operators like Eldorado Resorts, Golden Entertainment, Full House Resorts, and Pinnacle Entertainment are likely eager to get into the Las Vegas market but probably don't have the money to make a deal like Fontainebleau happen. Could one of these companies partner up with a rich benefactor like Ruffin to get it done?
Lastly and perhaps most likely to buy Fontainebleau are private equity real estate companies. Cosmopolitan parent company Blackstone might be a possibility if they are looking to expand their casino holdings. Once rumored Mirage buyer Starwood Capital might also be looking to buy.
Monday, October 19, 2015
Macau Government Responds to Steve Wynn
Steve Wynn verbally lashed out at the Macau government on the Wynn Resorts third quarter earnings conference call last week. Steve is frustrated at the government's restriction on the number of table games a casino is allowed to have.
The Macau government not surprisingly didn't appreciate what Wynn had to say and fired back in kind, issuing a release stating in part:
"The Government says it will not lightly change its policies on the gaming industry and on labour – policies that have been widely supported by the Macao public.
The Government additionally noted that overseeing applications for gaming table allocation for the local casino sector and applications by companies for non-resident labour are executive legal powers of the Macao Government.
The Government also expressed regrets over an opinion from a casino operator – reported by news media outside Macao – relating to the city's gaming policy...
...In order to reiterate the Government's stance and its principles on the gaming policy issue, the Secretary met with representatives of the relevant gaming operator on 18 October."
The release showed a photo of Wynn Macau president Gamal Aziz meeting with government officials. The news of the government response sent WYNN stock price down by more than 6% earlier today.
I have a couple of questions about this whole incident. The first one - was this calculated by Steve Wynn, or did he just fly off the handle at the spur of the moment? The second question is whether the Macau government is serious about their hard line stance on table games.
I have a feeling this is some kind of dog and pony show designed to get Wynn Palace more table games while letting the government save face at the same time.
The Macau government not surprisingly didn't appreciate what Wynn had to say and fired back in kind, issuing a release stating in part:
"The Government says it will not lightly change its policies on the gaming industry and on labour – policies that have been widely supported by the Macao public.
The Government additionally noted that overseeing applications for gaming table allocation for the local casino sector and applications by companies for non-resident labour are executive legal powers of the Macao Government.
The Government also expressed regrets over an opinion from a casino operator – reported by news media outside Macao – relating to the city's gaming policy...
...In order to reiterate the Government's stance and its principles on the gaming policy issue, the Secretary met with representatives of the relevant gaming operator on 18 October."
The release showed a photo of Wynn Macau president Gamal Aziz meeting with government officials. The news of the government response sent WYNN stock price down by more than 6% earlier today.
I have a couple of questions about this whole incident. The first one - was this calculated by Steve Wynn, or did he just fly off the handle at the spur of the moment? The second question is whether the Macau government is serious about their hard line stance on table games.
I have a feeling this is some kind of dog and pony show designed to get Wynn Palace more table games while letting the government save face at the same time.
Saturday, October 17, 2015
Steve Wynn Makes Casino Adjustments
Steve Wynn spent most of Thursday's Wynn Resorts earnings call complaining about the government in Macau, but he also had some comments about Las Vegas.
You may remember last quarter when Steve Wynn talked about lowering craps odds. This time he provided a little more context to those kinds of adjustments he's making in the casino:
"We made a whole bunch of changes in the casino, both physically and procedurally. We've even fooled with the rules of the game. It's been 50 years since Las Vegas increased the price of gaming. We're way overdue considering the cost of running games and payroll.
We've adjusted our yield rate management approach. Maurice Wooden is here and he's very good at that in the whole American operation. We've made a host of adjustments. We were off in one month from $100 million in baccarat to 45. We were off $55 million in baccarat but we made almost the same amount of money because of all the adjustments we made.
And they go across the board throughout the hotel. And the way we price the hotel, the restaurants, and entertainment and gaming. We don't sit by and allow ourselves to become victims of anything of any aspect of our operation over which we have any control. So my long term view of our operations in America and in China is still positive. It's the short term that's bewildering."
You may remember last quarter when Steve Wynn talked about lowering craps odds. This time he provided a little more context to those kinds of adjustments he's making in the casino:
"We made a whole bunch of changes in the casino, both physically and procedurally. We've even fooled with the rules of the game. It's been 50 years since Las Vegas increased the price of gaming. We're way overdue considering the cost of running games and payroll.
We've adjusted our yield rate management approach. Maurice Wooden is here and he's very good at that in the whole American operation. We've made a host of adjustments. We were off in one month from $100 million in baccarat to 45. We were off $55 million in baccarat but we made almost the same amount of money because of all the adjustments we made.
And they go across the board throughout the hotel. And the way we price the hotel, the restaurants, and entertainment and gaming. We don't sit by and allow ourselves to become victims of anything of any aspect of our operation over which we have any control. So my long term view of our operations in America and in China is still positive. It's the short term that's bewildering."
Thursday, October 15, 2015
Steve Wynn Frustrated by Macau Tables
Today's Wynn Resorts earnings call was particularly interesting with a frustrated Steve Wynn on the line. The reason for Steve's frustration: the government in Macau.
Macanese gaming regulators set the number of tables a casino is allowed to have. With the government seeking to de-emphasize gaming in favor of non-gaming activities they have been stingy with the amount of tables they are willing to license.
The brand new Studio City development by Melco Crown recently was only granted half of the tables they had asked for, and that decision was made a mere two weeks before the property is set to open on October 27, 2015.
Wynn was not happy about this, as it doesn't bode well for his upcoming Wynn Palace opening March 25, 2016. Aside from the prospect of having less tables, not knowing how many they're going to have makes staffing decisions almost impossible.
When speaking about the government's policy of allowing less tables Steve shouted, "The damn casino is the cash register!" That prompted one analyst to thank him for being "refreshingly frank."
Steve Wynn unlike other CEO's likes to speak freely about the issues of the day without worrying about what people will think. One exception though is China.
Wynn usually chooses his words about the Chinese government very carefully without questioning them. He seems to be getting away from that strategy though and if today's call is any indication he's now willing to let the government know exactly what he thinks.
Macanese gaming regulators set the number of tables a casino is allowed to have. With the government seeking to de-emphasize gaming in favor of non-gaming activities they have been stingy with the amount of tables they are willing to license.
The brand new Studio City development by Melco Crown recently was only granted half of the tables they had asked for, and that decision was made a mere two weeks before the property is set to open on October 27, 2015.
Wynn was not happy about this, as it doesn't bode well for his upcoming Wynn Palace opening March 25, 2016. Aside from the prospect of having less tables, not knowing how many they're going to have makes staffing decisions almost impossible.
When speaking about the government's policy of allowing less tables Steve shouted, "The damn casino is the cash register!" That prompted one analyst to thank him for being "refreshingly frank."
Steve Wynn unlike other CEO's likes to speak freely about the issues of the day without worrying about what people will think. One exception though is China.
Wynn usually chooses his words about the Chinese government very carefully without questioning them. He seems to be getting away from that strategy though and if today's call is any indication he's now willing to let the government know exactly what he thinks.
Wednesday, September 09, 2015
Wynn hosting Democratic Presidential Debate
Wynn Las Vegas will be hosting the upcoming Democratic presidential debate on October 13, 2015.
Steve Wynn is a well known republican and has been critical of the current presidential administration. It has even been reported that Steve Wynn has been advising fellow Las Vegas hotel owner Donald Trump on his campaign.
Knowing this, the resort released the following statement:
Ours is a team of great diversity, representing every race, gender, religion, sexual orientation and political philosophy, to have the privilege of being intimately involved in the American political process by hosting this debate is a moment of great pride and excitement for all of us.
Despite his political leanings Steve Wynn likes money and publicity more than any political candidate, and hosting this debate is sure to give his resort much of both.
Steve Wynn is a well known republican and has been critical of the current presidential administration. It has even been reported that Steve Wynn has been advising fellow Las Vegas hotel owner Donald Trump on his campaign.
Knowing this, the resort released the following statement:
Ours is a team of great diversity, representing every race, gender, religion, sexual orientation and political philosophy, to have the privilege of being intimately involved in the American political process by hosting this debate is a moment of great pride and excitement for all of us.
Despite his political leanings Steve Wynn likes money and publicity more than any political candidate, and hosting this debate is sure to give his resort much of both.
Thursday, July 30, 2015
Steve Wynn talks about Craps Odds
Yesterday I wrote a blog post about the Wynn Resorts second quarter earnings call. Mentioned in that post was the discussion of limiting craps odds to 2X. Many people seem to be interested in that topic, so I figured I would write a follow up post and include a transcript.
Steve Wynn talking about craps and more on the Wynn Resorts second quarter 2015 earnings conference call:
"I'm in the casino every day, and on the phone with my people. We've readjusted our floor. On the 4th of July. Interestingly enough, many of the games in Las Vegas have become marginally profitable.
Years ago down at Binion's they started at the crap table of giving ten times odds. If you bet a hundred dollars on the line you could bet a thousand dollars on the free odds behind the line - if you bet the pass line.
I'm getting a little technical, but in the old days in dice whatever you bet on the line you could bet the same amount behind the line. And that was a hold percentage of a little under one percent.
Then they started giving double odds compared to the amount of money you bet on the pass line, and that lowered the house percentage to point five seven.
Then it became a pattern on the Strip of what's called the three-four-five. Depending on what numbers you were betting on the crap table, to come up before number seven came up. You could get three times odds, four times odds, or five times odds. You know there are pairs of numbers on a dice table. Four and ten have two to one odds. Five and nine have a different set of odds, and six and eight are six to five. Well depending on what number you were trying to get, you could get three, four, or five times odds. That became a house advantage of point three seven.
With three dealers and a box-man, and half of a floor man for every table - craps is not a really profitable game at that level.
So I changed the casino. In effect I raised the price. And I went to double odds only. Except for extremely high play with a thousand dollar minimum bet.
I also rearranged the floor in the casino to put our specialty games that are very popular with the public - that have a higher margin - and I put them in the hundred percent location. And I moved my games with less of a margin to secondary locations. Those changes have worked out favorably to us in the past three weeks, and that kind of re-examination... our slot floor has been re-done. We win more money with less games now. These are some of the reasons why we make more money than anybody else in Las Vegas.
Now, some of the operators will copy us. You know we're not allowed to talk to one another because of obvious legal implications of price fixing, but we don't really care what the other guys do. We run our own business the way we see we should, and we're not in business to offer games that don't make money. And I don't mind saying that publicly. So we've done quite a bit of work in tightening up the way the casino works.
I know our competitors are on the call and they probably, everybody knows it the minute you make a change like that in Las Vegas it goes around town like wildfire. But those are some of the things we're doing, and it touches every aspect. We're constantly re-examining everything we do here. We sit in my office and discuss the most fundamental aspects of this industry every single week. We are not so much concerned with what has been, or what is, as we are concerned about what might be. And that's a principal truth of our company whether it's in China or in Las Vegas, or Boston or wherever."
Steve Wynn talking about craps and more on the Wynn Resorts second quarter 2015 earnings conference call:
"I'm in the casino every day, and on the phone with my people. We've readjusted our floor. On the 4th of July. Interestingly enough, many of the games in Las Vegas have become marginally profitable.
Years ago down at Binion's they started at the crap table of giving ten times odds. If you bet a hundred dollars on the line you could bet a thousand dollars on the free odds behind the line - if you bet the pass line.
I'm getting a little technical, but in the old days in dice whatever you bet on the line you could bet the same amount behind the line. And that was a hold percentage of a little under one percent.
Then they started giving double odds compared to the amount of money you bet on the pass line, and that lowered the house percentage to point five seven.
Then it became a pattern on the Strip of what's called the three-four-five. Depending on what numbers you were betting on the crap table, to come up before number seven came up. You could get three times odds, four times odds, or five times odds. You know there are pairs of numbers on a dice table. Four and ten have two to one odds. Five and nine have a different set of odds, and six and eight are six to five. Well depending on what number you were trying to get, you could get three, four, or five times odds. That became a house advantage of point three seven.
With three dealers and a box-man, and half of a floor man for every table - craps is not a really profitable game at that level.
So I changed the casino. In effect I raised the price. And I went to double odds only. Except for extremely high play with a thousand dollar minimum bet.
I also rearranged the floor in the casino to put our specialty games that are very popular with the public - that have a higher margin - and I put them in the hundred percent location. And I moved my games with less of a margin to secondary locations. Those changes have worked out favorably to us in the past three weeks, and that kind of re-examination... our slot floor has been re-done. We win more money with less games now. These are some of the reasons why we make more money than anybody else in Las Vegas.
Now, some of the operators will copy us. You know we're not allowed to talk to one another because of obvious legal implications of price fixing, but we don't really care what the other guys do. We run our own business the way we see we should, and we're not in business to offer games that don't make money. And I don't mind saying that publicly. So we've done quite a bit of work in tightening up the way the casino works.
I know our competitors are on the call and they probably, everybody knows it the minute you make a change like that in Las Vegas it goes around town like wildfire. But those are some of the things we're doing, and it touches every aspect. We're constantly re-examining everything we do here. We sit in my office and discuss the most fundamental aspects of this industry every single week. We are not so much concerned with what has been, or what is, as we are concerned about what might be. And that's a principal truth of our company whether it's in China or in Las Vegas, or Boston or wherever."
Wednesday, July 29, 2015
Wynn Palace Macau Opening Date June 25, 2016
UPDATE: November 18, 2015 - The opening date has been moved to June 25, 2016.
Wynn Resorts today reported financial results for second quarter 2015. Macau operations were down 35.8% which was to be expected given the trends in that market. Las Vegas operations were down 6.2% overall with casino revenue down 26.2% due to a large drop in baccarat business.
On the earnings conference call Steve Wynn announced that Wynn Palace in Macau will have a targeted opening date of March 25, 2016.
Talking about Las Vegas - Wynn said the company is enjoying "comfortable" growth, but it's not an explosive growth market by any means. Lower gaming numbers being offset by strong non-gaming.
Steve also talked about his decision to limit craps to 2X odds saying, "We are not in business to offer games that don't make money." After overhead costs craps isn't a very profitable game according to Wynn, and he thinks 2X odds might spread throughout the Strip. He also talked about moving higher margin games to higher traffic areas of the floor while moving lower margin games to the back of the casino.
When asked about possible mergers or acquisitions, Wynn said there aren't any imminent discussions going on. He would only make a deal if it made sense going forward, "I'm more interested in tomorrow's newspaper than yesterday's newspaper."
After all the analyst questions were asked, Wynn took a moment to talk about the Boston / Everett project saying, "I'm an eternal optimist. It will feel good when they stop hitting us."
Wynn Resorts today reported financial results for second quarter 2015. Macau operations were down 35.8% which was to be expected given the trends in that market. Las Vegas operations were down 6.2% overall with casino revenue down 26.2% due to a large drop in baccarat business.
On the earnings conference call Steve Wynn announced that Wynn Palace in Macau will have a targeted opening date of March 25, 2016.
Talking about Las Vegas - Wynn said the company is enjoying "comfortable" growth, but it's not an explosive growth market by any means. Lower gaming numbers being offset by strong non-gaming.
Steve also talked about his decision to limit craps to 2X odds saying, "We are not in business to offer games that don't make money." After overhead costs craps isn't a very profitable game according to Wynn, and he thinks 2X odds might spread throughout the Strip. He also talked about moving higher margin games to higher traffic areas of the floor while moving lower margin games to the back of the casino.
When asked about possible mergers or acquisitions, Wynn said there aren't any imminent discussions going on. He would only make a deal if it made sense going forward, "I'm more interested in tomorrow's newspaper than yesterday's newspaper."
After all the analyst questions were asked, Wynn took a moment to talk about the Boston / Everett project saying, "I'm an eternal optimist. It will feel good when they stop hitting us."
Tuesday, July 29, 2014
Wynn Posts Strong Las Vegas Results
Usually when Wynn Resorts reports quarterly earnings results Las Vegas is hardly mentioned. Macau gets most of the attention these days, and for good reason - Wynn and Encore Macau account for more than double the revenue of their Sin City counterparts. The numbers will be skewed even more towards Asia when Wynn Palace opens on Cotai in 2016.
This time though Las Vegas stole back a bit of the spotlight. Second quarter 2014 revenue grew 12.5% which is robust for a Las Vegas market which has been fairly flat over the past few years. The success seems to be ongoing, as Steve Wynn revealed on the earnings conference call that July in Las Vegas could be the strongest he's ever seen.
The strong Vegas numbers even prompted one analyst to ask if certain high rollers were choosing Las Vegas over Macau, a notion that was seemingly dismissed by Steve and co.
Wynn isn't a great bellwether for the city as a whole since they cater to the very top end of the market. That being said it's nice to see some good numbers for Las Vegas and hopefully other hotels on the Strip will see some encouraging results as well.
This time though Las Vegas stole back a bit of the spotlight. Second quarter 2014 revenue grew 12.5% which is robust for a Las Vegas market which has been fairly flat over the past few years. The success seems to be ongoing, as Steve Wynn revealed on the earnings conference call that July in Las Vegas could be the strongest he's ever seen.
The strong Vegas numbers even prompted one analyst to ask if certain high rollers were choosing Las Vegas over Macau, a notion that was seemingly dismissed by Steve and co.
Wynn isn't a great bellwether for the city as a whole since they cater to the very top end of the market. That being said it's nice to see some good numbers for Las Vegas and hopefully other hotels on the Strip will see some encouraging results as well.
Tuesday, November 27, 2012
Wynn Funhouse Show and Billy Joel Rumors
With Garth Brooks recently ending his run at Encore, Steve Wynn has revealed plans for a new show to take his place at Encore Theater. Wynn told Robin Leach about the new "Funhouse" show, which he claims will be different from anything else on the Strip. The way Wynn described the show makes me think it will be somewhat similar to Le Reve, but Wynn claims it will be different from that and similar Cirque du Soleil type shows.
Casting and rehearsals for "Funhouse" are beginning immediately, with the show likely to make a late 2013 debut.
That time-frame leaves Encore Theater rather empty for the next year or so, which might give the following rumor some legs. Robin Leach is also reporting that Billy Joel might be taking over Encore Theater for New Years Eve, and could possibly stick around for a longer residency similar to what Garth Brooks did. This seems to be a good fit for the Wynn clientele, and would give Joel a nice one year run before "Funhouse" starts.
Casting and rehearsals for "Funhouse" are beginning immediately, with the show likely to make a late 2013 debut.
That time-frame leaves Encore Theater rather empty for the next year or so, which might give the following rumor some legs. Robin Leach is also reporting that Billy Joel might be taking over Encore Theater for New Years Eve, and could possibly stick around for a longer residency similar to what Garth Brooks did. This seems to be a good fit for the Wynn clientele, and would give Joel a nice one year run before "Funhouse" starts.
Friday, March 02, 2012
Wynn Foxboro Rendering
Wynn Resorts is looking to build a billion dollar casino resort in Foxboro, Massachusetts. The project still needs to be approved locally, which may or may not happen.
Today Wynn released a rendering of the resort. It's a lodge style building modeled after Steve's personal home in Idaho.
This design is definitely different than one would expect from a new casino. I suspect they kept it subtle to appeal more to the local clientele.
It will be interesting to see how this turns out if they end up building it. Steve Wynn rarely disappoints, so I'm guessing it would be pretty nice.
Images: Wynn Resorts via Boston Globe.
Today Wynn released a rendering of the resort. It's a lodge style building modeled after Steve's personal home in Idaho.
This design is definitely different than one would expect from a new casino. I suspect they kept it subtle to appeal more to the local clientele.
It will be interesting to see how this turns out if they end up building it. Steve Wynn rarely disappoints, so I'm guessing it would be pretty nice.
Images: Wynn Resorts via Boston Globe.
Friday, January 27, 2012
Steve Wynn is 70
Steve Wynn is celebrating his 70th birthday today.
Like him or not there's no doubt Steve Wynn has left his mark on the Las Vegas skyline, building the Mirage, Treasure Island, Bellagio, Wynn, and Encore.
It doesn't appear Steve is going to slow down anytime soon. He just got married, and is looking forward to developing his new Cotai Strip property in Macau.
I don't know if he'll ever build another hotel in Las Vegas though. I guess it depends on the economy. It would be fun to see what he comes up with if it happens.
Like him or not there's no doubt Steve Wynn has left his mark on the Las Vegas skyline, building the Mirage, Treasure Island, Bellagio, Wynn, and Encore.
It doesn't appear Steve is going to slow down anytime soon. He just got married, and is looking forward to developing his new Cotai Strip property in Macau.
I don't know if he'll ever build another hotel in Las Vegas though. I guess it depends on the economy. It would be fun to see what he comes up with if it happens.
Sunday, May 01, 2011
Steve Wynn's Royal Wedding
Las Vegas had its own Royal Wedding this weekend, as Steve Wynn married Andrea Hissom.
The wedding was reportedly star studded. Clint Eastwood was the best man. Garth Brooks and Lionel Ritchie performed. Other heavy hitters expected to attend the event included Donald Trump, Sylvester Stallone, Michael Milken, Sol Kerzner, Brett Ratner, Celine Dion, Naomi Campbell and Hugh Jackman.
Steve Wynn and Andrea Hissom were engaged back in December.
The wedding was reportedly star studded. Clint Eastwood was the best man. Garth Brooks and Lionel Ritchie performed. Other heavy hitters expected to attend the event included Donald Trump, Sylvester Stallone, Michael Milken, Sol Kerzner, Brett Ratner, Celine Dion, Naomi Campbell and Hugh Jackman.
Steve Wynn and Andrea Hissom were engaged back in December.
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