Wynn Resorts pledges to play part in attracting foreign bettors in reformed sector
Casino operator Wynn Resorts has pledged to boost the concerted effort to diversify the city’s market, according to an approved landmark casino bill that also targets attracting foreign players.
The biggest reform in over 20 years, the SAR government has updated the stipulations regarding the bidding process for casino licenses in Macau, which highlights corporate social responsibility and attracting non-Chinese bettors.
Speaking in an earnings call with analysts, Craig Billings, CEO of Wynn Resorts, recalled that it took Las Vegas some time before being able to attract international bettors, and that it was a concerted effort by both government and business operators.
According to US media reports, some 207,000 Chinese travelers visited the gambling hub in 2015, a figure that has nearly quadrupled since 2006.
“We understand and appreciate what Macau is trying to achieve, diversifying the market, both in terms of the geographic origin of visitors and their motivations to visit, is not a process that happens overnight,” said Billings.
“We were instrumental in leading that change here in Vegas, and we will, of course, continue to play our part in Macau’s journey to do the same,” the executive added.
To obtain a new license, casinos are set to undergo processes of tough scrutiny with the new gaming law – which gives power to the Chief Executive to terminate a concession if it is considered a threat to national security or to the security of Macau.
Shedding light on its bid proposal that is underway, president of Wynn Macau, Ian Coughlan, said, “We have sought some minor clarifications and we’re in a six-week process of crystallizing our responses, which will get submitted by all six operators on September 14.”
“And then, we go into a period of negotiation. And I think, the government’s intent is clearly before the end of the year to announce the successful operator,” he said in the same earnings call.
The licenses of MGM Resorts, Las Vegas Sands, Wynn Resorts and three Chinese rivals that invested billions of dollars in Macau expire in December, following an extension the operators applied for, costing them some MOP47 million.
Rules released in early July say any that want to operate over the next 10-year period face an added requirement to invest in “non-gaming projects.”
Financial analysts expect the Americans to get licenses, but the government says bidding is open to anyone.
Meanwhile, Billings expressed confidence in the reshuffling of the operator’s management team including Linda Chen’s move into the role of president early next year, as Coughlan has decided to transition to a role as advisor to the company through 2023.
“I have immense confidence in Linda, Frederic [Luvisutto] and Craig [Fullalove] and know that they are the right team for the future. The authorities in Macau continue to advance the concession process according to the pre-established time line,” said Billings.
“We are currently working through our response to the concession tender RFP (request for proposal). Longer term, we remain excited about the prospects for Macau with so much pent-up demand for travel and tourism in Asia,” the executive added.
Wynn Macauís net
loss widens
Wynn Macau’s net loss has widened to USD270.6 million during the second quarter, compared to the previous quarter’s USD188.5 million of losses.
With these losses, the gaming operator posted operating revenues of USD298.4 million.
“In Macau, while Covid-related travel restrictions continued to impact our results, we remain confident that the market will benefit from the return of visitation over time,” said Billings.
Operating revenues from Wynn Palace were USD58.7 million for the second quarter of 2022, a decrease of USD211.7 million from USD270.4 million for the second quarter of 2021; while operating revenues from Wynn Macau were USD58.6 million for the second quarter of 2022, a decrease of USD125.4 million from USD184.0 million for the second quarter of 2021.
