Wynn Resorts Considering Multiple Japanese Cities For New Casino
Wynn Resorts Ltd is very keen on securing one of the three integrated resort licenses in Japan. The gambling operator hasn’t finalized on a location like some of its competitors and for the time being is looking at multiple cities in Japan to determine the pros and cons of developing a multi-billion integrated casino resort.
CEO Matt Maddox, in a recent interview on CNBC, revealed his plans for the high-end casino brand – disclosing that a consortium partnership with Japan is already in the works.
Though he did not reveal the identity of the other entities involved in the Japan consortium, Maddox teased that the group includes other competitive operators gunning to enter this new East Asian market.
Wynn Resorts has a strong presence in Macau and the United States. The casino operator launched its $2.6-billion Encore Boston Harbor casino resort in Massachusetts earlier this month and will now focus its attention on the lucrative Japanese market.
Maddox confirmed that the company has been working for many years with its partners preparing for this moment. During an industry assembly in Tokyo last month, Wynn Resorts Development LLC president Chris Gordon teased that the amount they’re slated to invest in their Japan endeavour is set to soar above the capital spending they had first allotted to build the Wynn Palace in Macau, which was inaugurated August 2016. The cost of the Wynn Palace was estimated to be around $4.4 billion.
Wynn Resorts is likely to spend a lot more as competitors MGM Resorts and Las Vegas Sands Corp have talked about investing over $10 billion if they were given one of the three casino licenses. Wynn Resorts is confident that given its reputation of building top end casino resorts, it would help the brand secure a gaming license.
CEO Maddox Downplays VIP Gaming Slowdown
Chinese high-rollers account for a huge portion of the VIP segment, but with Beijing weighed down by prolonged trade tensions with the west, gambling spending fell hard. However, Maddox remains confident that things will turn around as the VIP market has stabilized in the last two quarters.
Wynn Resorts remains predominantly spurred by the proceeds of its casinos in Macau, which brings in its highest revenue.
Despite Maddox’s optimism, industry analysts see Macau’s gross gaming revenue (GGR) underperforming in the second half of 2019, still hounded by on-going US-China trade tensions. However, the good news is that the Nomura banking group sees Wynn’s new Encore Boston Harbor property contributing substantially in the major gambling operator’s growth.