The founder and CEO of the Wynn Resort is one happy man. The reason is the better than expected Q3 results posted by the company.
The Vegas gains
The Q3 profits are higher for the company Wynn Resorts Ltd as the Vegas revenues for the company surged. The rise, which is estimated at 9 percent at their two casinos in Las Vegas, helped the company even when the company profits saw a drop in their Macau profits. Interestingly, it is the Macau casino that accounts for the majority of the casino business from the company. The Macau casinos for Wynn have been registering losses since last few months and this has affected the Q3 earnings for the company if overall performance is taken into account. Nevertheless, the Las Vegas casinos of the company have come to the rescue this time around and helped Wynn with more than expected Q3 performance.
The reasons for loss
The lucrative Macau casino business has suffered due to the Chinese government taking strict measures against corrupt practices. This has affected the casino business even though Macau is the only place in China where gambling business is legal. To make matters worse for the casino business, a new ban on smoking that is recently put into place could further affect the business in Macau. The high-rollers are not very enthusiastic with these new developments in China ad are leaving to play in casinos where there are no restrictions or problems.
However, with everything happening in China, the company is still going ahead with its new resort in Macau that is being constructed and the plans are to open its gate in 2016. This has been not put under hold as the company management believes that the current situation in China that is affecting the casino business is temporary and is bound to improve in the coming months. With the Wynn Palace in business, which is the name of the new upcoming resort and its ongoing Macau and Las Vegas business, the Wynn Resort management is confident of registering better profits in the coming months and years.