About Wynn Resorts Holdings, LLC
Wynn Resorts operates a handful of luxury casino resorts, including the Wynn Las Vegas in Las Vegas, and the Wynn Macau and the Wynn Palace in Macau, China, the only place in China where gambling is legal. It opened its first US resort and casino outside Vegas, the $2.6 billion Encore Boston Harbor, in June 2019. The company's properties integrate luxury hotel rooms, high-end retail, an array of dining and entertainment options, meeting and convention space, and gaming. Most revenue comes from China. The firm works to attract international customers through marketing offices in Hong Kong, Singapore, Japan, Taiwan, and Canada. The Wynn brand is the brainchild of gaming mogul and former Mirage Resorts chairman, Steve Wynn.
Wynn Resorts gets about 70% of its revenue from its casino segment; more than 10% from food and drink; and more than 10% from hotel rooms fees. The remainder comes from entertainment, retail, and other operations.
In Macau, China, its Wynn Palace features a luxury hotel tower with more than 1,700 guest rooms, approximately 425,000 square feet of casino space, some 37,000 square feet of meeting and convention space, and more than 105,000 square feet of retail space. Its smaller Chinese property, Wynn Macau, features two hotel towers with more than 1,000 rooms, along with casino and retail space, and meeting and convention rooms.
Wynn Las Vegas boasts two hotel towers with more than 4,700 rooms, and space for casino gaming, meetings and conventions, and retail.
The company's newest property, Encore Boston Harbor, is a resort in Everett, Massachusetts, near Boston along the Mystic River. The resort contains a hotel, a waterfront boardwalk, meeting and convention space, casino space, a spa, retail offerings, and food and beverage outlets.
Wynn Resorts owns approximately 72% of its operations in China (Wynn Macau, Limited) and 100% of its operations in the US (Wynn Las Vegas). Highly dependent on consumer spending in China, the company generates some 75% of total revenues from Macau, while Las Vegas accounts for the remaining 25%.
Sales and Marketing
Wynn Resorts offers loyalty programs at its properties. Customers who earn points redeem them for free play, gifts, and complimentary dining and retail shopping. It seeks to attract high-net-worth international tourists to its properties.
The company spent $41 million on advertising and promotional expenses in fiscal 2018, up from about $38 million in fiscal 2017.
Wynn Resorts has reported year-over-year revenue growth since 2015 thanks in part to the strength of the gambling industry in the US and a rebound in Macau casinos. Any sudden downturn in Macau will hinder earnings despite costly upgrades and new hotels. The company has also demonstrated commitment to growth through development and expansion of its properties. The company has reported positive net income over the last five years, with profits reaching a low of $295 million in 2015 and a high of $747 million in 2017.
Wynn reported more than $6.7 billion in revenue for fiscal 2018 versus $6.1 billion in fiscal 2017. The increase was largely the result of increases in VIP turnover and table drop at Wynn Palace in Macau.
In 2018 net income dropped 23% from the prior year to reach $572.4 million. The company attributes the decrease to a litigation settlement expense related to founder and former Chairman and CEO, Steve Wynn, and his separation from the company over sexual harassment allegations.
Cash at the end of 2018 was $2.2 billion. Cash from operations was $961.5 million, while investing activities used $1.2 billion. Financing activities used $324.3 million.
Wynn Resorts regularly seeks opportunities to expand or enhance its existing properties as well as develop new ones. It is currently investing big in development, renovation, and remodeling projects at its Las Vegas and Macau properties and in 2019 opened a new resort outside Boston.
In Las Vegas it is constructing some 430,000 square feet of additional meeting and convention space and has begun plans to reconfigure its golf course. Wynn is also exploring various development opportunities on about 38 acres of land on the Las Vegas Strip directly across from Wynn Las Vegas.
In China, it is remodeling its Wynn Club gaming area at Wynn Macau, adding table games, a refurbished high-limit slot area, two new restaurants, and retail space and will provide for improved pedestrian access. In 2019 Wynn Resorts announced plans to spend $2 billion on expanding Wynn Palace. Construction will start in 2021 and is expected to take 36-plus months.
Amid these growth efforts the company was embroiled in controversy when its founder Steve Wynn was hit with sexual assault charges from Wynn Resorts' employees in 2018. He resigned less than a month after The Wall Street Journal reported on the allegations, and in February 2019 regulators in Nevada fined the company $20 million for ignoring complaints about Wynn's behavior. The fine was the largest ever imposed against a gambling licensee in Nevada. Wynn Resorts responded with statements that it is committed to maintaining a safe and respectful culture, requires annual anti-harassment training for all, and offers an anonymous hotline.
Steve Wynn founded Wynn Resorts in after buying the Desert Inn hotel and casino in Las Vegas for $270 million from Starwood Hotels & Resorts as a birthday gift for his then wife in 2000. The deal followed his sale of Mirage Resorts to MGM Grand. Wynn reportedly received nearly $500 million from the Mirage sale.
Wynn resigned as chairman and CEO in 2018 in response to sexual misconduct allegations spanning decades.
3131 LAS VEGAS BLVD S
Las Vegas, NV 89109-1967
Phone: 1 (702) 770-7555
Employer Type: Privately Owned
Employees (This Location): 26
Employees (All Locations): 13,000
Las Vegas, NV