Wynn Resorts has ceased its pursuit of a casino license in Japan, according to the company’s Chief Executive Officer Matt Maddox, who confirmed the news on earnings call this week.
Back in December, the casino operator unveiled Wynn Resorts Development Japan, an office located in Yokohama that would help the U.S.-based operator to pursue a casino license in Japan.
The company has now confirmed the closure of Wynn Resorts Development Japan amid the “unprecedented negative impact on integrated resort development.”
The closure was actualized four months ago, according to a report by Inside Asian Gaming.
“We have been monitoring that situation for years and years. Back in March, we decided that until there is more clarity on what the business is going to look like, what the world is going to look like, and what the regulations really are over there, we’re pretty much ceasing our efforts,” said Maddox, according to the same report.
Talking about the company’s Japan interest, Maddox said that Wynn Resorts was “more monitoring as opposed to being really active.”
Although Wynn Resorts is no longer focused on the Japan opportunity, the company remains interested “in the Japan market and IR [integrated resort] development there.”
During the company’s second-quarter earnings calls this week, Ian Coughlan, president of Wynn Macau, indicated that the group remained focused on the Macau market.
Coughlan believes that as long as one particular mainland province – Guangdong in this case – resumes the issuing of tourist visas to Macau, the company’s business in this city can be lifted “significantly.”
“We really believe the power comes from Guangdong,” said Coughlan.
On Tuesday, Wynn Resorts reported the financial results for the second quarter.
Operating revenues for Wynn Resorts were $85.7 million (683 million patacas) in the second quarter of 2020, a decrease of 94.8% from $1.66 billion (13.2 billion patacas) in the second quarter of 2019. Operating revenues for the company’s local arm, Wynn Macau, plummeted by 98.2% to just $20.6 million (164 million patacas).
“In Macau, the authorities have begun to gradually and thoughtfully ease some visitation restrictions, and we are confident the market will benefit from the return of the Chinese consumer as we move through the back half of 2020,” said Maddox.