Wynn Resorts Ltd. said the opening of its newest casino in Macau will be postponed by three months, until June 25, 2016, because of construction delays.
The general contractor, Leighton Holdings Ltd., notified Wynn that it couldn’t complete the Wynn Palace by the previously announced March date, according to a statement from the Las Vegas-based company.
The USD4.1 billion resort is one of several set to open next year. The Chinese territory, the world’s largest gambling market, has suffered a steep decline in betting amid a crackdown on corruption in the country. Wynn generated 70 percent of its 2014 revenue in Macau and has fallen the most among U.S. companies operating there, with the stock down almost 60 percent this year.
Wynn fell 0.4 percent to $61.31 at the close in New York.
The Wynn Palace will feature 1,700 hotel rooms, a lake with gondolas and fountains, meeting space, a casino, a spa, stores and food-and-beverage outlets. It is the first for the company in the Cotai area of Macau.
Two major new resorts that opened this year, from Melco Crown Entertainment Ltd. and Galaxy Entertainment Group Ltd., haven’t stemmed Macau’s 17-month betting slump. Casino revenue fell 28 percent year-over-year in October and Macau Chief Executive Fernando Chui said Tuesday the government has forecast revenue of MOP200 billion ($25 billion) for 2016, the lowest since 2010.
Wynn Resorts founder and CEO Steve Wynn criticized Macau authorities last month for not telling casino operators until just before their opening dates how many table games they will be allowed to offer. Limits on the number of table games endanger the profitability of the projects, he said. Christopher Palmeri, Bloomberg
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