Wynn Resorts, Las Vegas Sands and MGM Resorts all intend to expand in Macau despite strong signals that the boom times may be over, for now at least. It might be time to rewrite the playbook.
Wynn Resorts Ltd. said revenue and profit is continuing to fall in its largest market, Macau, amid a steep in drop in betting sparked by a government crackdown on corruption.
First-quarter earnings in Macau will be $187 million to $195 million before interest, taxes, depreciation and amortization, the Las Vegas-based company said Tuesday in a statement. That compared with $212.3 million in the same period last year.
Revenue in the Chinese enclave will be $603 million to $613 million, compared with $705 million a year earlier, Wynn said. Both VIP and mass-market betting were down.
The casino company founded by billionaire Steve Wynn plans to open its newest Macau property, the $4.1 billion Wynn Palace, in June. Total betting continues to fall in that market, the only place in China where casino gambling is legal. Las Vegas Sands Corp. and MGM Resorts International are also set to open new resorts there this year.
Wynn Resorts is holding an investor presentation in Las Vegas on Wednesday that will be streamed on the company’s website. Last year, the company generated 60 percent of its $4.08 billion in revenue in Macau.
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©2016 Bloomberg L.P.
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Photo Credit: Wynn Resorts' profits are falling in Macau as Chinese authorities crackdown on corruption among business people and the ranks of Communist Party officials. WiNG / Wikipedia