Wynn can’t win for losing lately as its earnings and revenues were downbeat; the business in Las Vegas was better than in Macau, but that isn’t saying much. According to VegasInc, net revenue was down 3.3% at $5.4 billion. Operations in Macau fell an astounding 32%, while the Las Vegas business was off 5.8%. Net income was only $109.3 million for the quarter, half of the $213.9 million last year for the same time period.
CEO Steve Wynn has been depending on high-rollers in China, but with the government’s crackdown on corruption and the luxury where it breeds, Wynn has been hit hard. According to VegasInc, Wynn said in a conference call, “China is a big question mark. We have more questions than answers.” Equally distressing is the delay in its newest casino in Macau, although the question is, if it opens, will it even be profitable in the current environment? The $4 billion new location under construction called Wynn Palace, will most likely not make its planned opening for the Chinese New Year 2016. “There’s nothing to be done but be patient, ” said Wynn, sounding resigned.
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Las Vegas seems to be better, where Wynn is concentrating on the non-casino experience, and revenues come from extras at hotels and shopping rather than mainly from gambling. It seems that people spend first and gamble later. According to theState.com, Wynn said the gambling experience is what counts, “because every damn slot machine on Earth looks like another.”