Wynn Resorts

Wynn Resorts, Limited is an American publicly traded corporation based in Paradise, Nevada, that is a developer and operator of high-end hotels and casinos. It was founded in 2002 by former Mirage Resorts Chairman and CEO Steve Wynn, and is now run by CEO Craig Billings.[4] As of 2020, the company has developed six properties.[1]

Wynn Resorts, Limited
TypePublic company
IndustryHospitality, Tourism, Gaming
Founded2002 (2002)[1]
Founders
HeadquartersLas Vegas Strip (Paradise), Nevada, U.S.
Area served
Key people
Craig Billings (CEO)
ProductsCasinos, Entertainment, Gaming and Resorts
RevenueDecrease US$3.7 billion (2022)
Increase US$−100 million (2022)
Increase US$−420 million (2022)
Total assetsIncrease US$13 billion (2022)
Total equityDecrease US$−1.6 billion (2022)
OwnerElaine Wynn, (8.25%) [2]
Number of employees
27,000 (2022)
Websitewynnresorts.com
Footnotes / references
[3]
Previous Wynn Resorts logo

History

In 2000, Steve Wynn agreed to sell Mirage Resorts to MGM Grand, after having led Mirage and its predecessors since 1973. Wynn laid the foundation for his next venture that same year, buying the Desert Inn for $270 million.[5]

Wynn found an early partner in Japanese billionaire Kazuo Okada of Universal Entertainment Corporation.[6] Wynn, together with Universal subsidiary Aruze USA, controlled almost half the stock, making it harder for outside investors to exert control, as they had done at Mirage in response to Wynn's prolific spending.[5][7]

Wynn hired investment banker Ronald Kramer as president and director in 2002 in order to help take the company public and oversee its expansion.[8]

Wynn Resorts made its initial public offering on NASDAQ on October 25, 2002. The company's first project, Wynn Las Vegas, opened on April 28, 2005.

Wynn Macau, the company's second project started construction on June 28, 2004. It opened September 5, 2006 and is now the largest-grossing casino in the region.

Encore, an extension to Wynn Las Vegas, broke ground on April 28, 2006, the first anniversary of the opening of Wynn Las Vegas. Encore at Wynn Macau, the company's second project on the Macau Peninsula, Macau, People's Republic of China, opened on April 21, 2010. A second resort in Macau, Wynn Palace in Cotai, opened August 22, 2016.

Wynn bought 52 acres (21 ha) in Cotai, Macau where he hoped to break ground in 2012 for Wynn Cotai for a 2013 or early 2014 opening.

The company considered opening a casino as part of the Entertainment City development in the Philippines, but decided against it because of corruption in the country's gaming industry.[7] Okada decided to proceed with the project alone, leading to the rupture of his partnership with Wynn. The dispute went public with reciprocal accusations of corrupt practices. Wynn and his allies accused Okada of bribing Philippines gaming regulators with over $110,000 in benefits, including free nights in a luxury suite at Wynn Las Vegas, while Okada claimed that Wynn Resorts' record $135 million donation to the University of Macau constituted a bribe.[6][9] Okada resigned as vice chairman in October 2011, and the following February, after a company investigation by the Freeh Group confirmed the charges against him, the board of directors forced Aruze USA to sell back its shares at a nearly 30% discount.[6] Aruze had been the company's largest shareholder, with a 19.7% stake.

On September 17, 2014, the Massachusetts Gaming Commission voted to approve Wynn Resorts' proposed $1.6 billion casino to be located in Everett, Massachusetts on the Mystic River, just north of Boston. This project will be known as Encore Boston Harbor and was scheduled to open in 2019.[10]

On February 6, 2018, Steve Wynn resigned as CEO of the company amidst sexual allegations and was replaced by Matthew Maddox.[11] Amid sexual harassment lawsuits involving directors, Maddox announced the planned departure of two board members, Ray Irani and Alvin Shoemaker, on March 7, 2018. The departure of Irani and Shoemaker was to reassure investors that the corporate culture was changing.[12] In April 2018, the company nominated three women to the board of directors: Dee Dee Myers, Betsy Atkins, and Wendy Webb.[13]

Talks between Wynn and Crown Resorts of Australia for a $7.1 billion offer collapsed in April 2019; analysts saw the bid as an attempt to diversify away from Macau, where its license was set to expire in 2022.[14] A joint deal between the government of Macau, Las Vegas Sands, Wynn, and MGM extended the gaming licenses until 2032. [15]

On May 28, 2019, Wynn paid a $ 35 million fine to the Massachusetts Gaming Commission and the $500,000 fine placed on Matthew Maddox.[16]

On November 9, 2021, Wynn announced that Matthew Maddox would be stepping down as CEO on January 31, 2022. Craig Billings was named as successor to Maddox. Previously, Craig Billings was the CEO of Wynn Interactive and former CFO of Wynn Resorts.[17] Billings assumed the role of CEO effective February 1, 2022.[18]

Economic performance

The Encore in Las Vegas opened shortly after the beginning of the Great Recession. Despite the additional casino at the Encore (which added 97 tables and 857 slot machines to the original 190 tables and 2000 slots), net casino revenues for the combined resort were initially lower. Similarly, in the first quarter of 2009, net revenues of the Macau operations declined. Following the global economic recovery, performance of the Wynn properties also recovered. Wynn remained the only gaming operator to not perform mass layoffs during the recession.[19] In 2017 CNBC reported that Wynn's stock was up 44% for the year and that Wynn's Macau operations were the leading US-based resorts there.[20] Wynn resorts continued to operate during the pandemic while requiring employees who choose not to receive a COVID-19 vaccination to submit weekly test results for the virus.[21] The company indefinitely suspended it dividend in response to liquidity issues during the pandemic. [22] Shortly after pandemic restrictions were lifted in the United States and in Macau, the company began a recovery of revenues and profits. In 2022 it bought back $628 million shares.[22]

Union Relations

47% of Wynn's American employees are unionized.[22] The largest union of Wynn employees is the Culinary Workers Union which agreed to delay automatic contractual wage increases for its members during the COVID-19 pandemic. Their agreement with Wynn expired in July of 2023 and the union is seeking historic pay increases.[23]

Properties

Las Vegas Strip, Nevada
Image Logo Property Date Opened
Wynn Las Vegas April 28, 2005 (2005-04-28)
Encore Las Vegas December 22, 2008 (2008-12-22)

Everett, Massachusetts
Image Logo Property Date Opened
Encore Boston Harbor June 23, 2019 (2019-06-23)

Macau
Image Logo Property Date Opened
Wynn Macau September 6, 2006 (2006-09-06)
Encore at Wynn Macau April 21, 2010 (2010-04-21)
Wynn Palace August 22, 2016 (2016-08-22)

Ras al Khaimah, UAE
Image Property Date Opening
Wynn Al Marjan Island,[24][25][26] Q1 2027 (Q1 2027)

Las Vegas Strip, Nevada
Image Property Date Opened Date Closed
Desert Inn April 24, 1950 (1950-04-24) August 28, 2000 (2000-08-28)

References
  1. "Two of a kind" (paper), Fortune, p. 22, 29 April 2013
  2. 2021 Proxy Statement
  3. "US SEC: 2019 Form 10-K Wynn Resorts, Limited". U.S. Securities and Exchange Commission. February 28, 2020. Retrieved May 26, 2020.
  4. "Craig Billings | Management | WYNN RESORTS LTD". wynnresortslimited.gcs-web.com. Retrieved 2022-02-01.
  5. Palmeri, Christopher (26 April 2005). "The revenge of Steve Wynn". MSNBC. Retrieved 3 March 2012.
  6. Bradsher, Keith (2 March 2012). "Wynn Resorts Partners Split, and Accusations Fly". The New York Times. Retrieved 2 March 2012.
  7. Sieroty, Chris (21 February 2012). "Okada wants court to stop stock seizure; Wynn says game over". Las Vegas Review-Journal. Retrieved 2 March 2012.
  8. Stutz, Howard (18 March 2008). "Wynn loses company president". Las Vegas Review-Journal. Retrieved 16 January 2013.
  9. Louisiana Municipal Police Employees' Retirement System v. Wynn, p. 7 (9th Cir. July 18, 2016).Text
  10. "Panel Picks Wynn's Everett Casino Proposal".
  11. Kirkham, Chris (2018-02-07). "Steve Wynn to Step Down as Wynn Resorts CEO". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-02-07.
  12. "New Wynn CEO says 2 board members leaving, Wynn brand strong". Las Vegas Review-Journal. 2018-03-07. Retrieved 2018-03-19.
  13. "Wynn Resorts Adds Three Women to Board in Post-Scandal Shake-Up". Bloomberg.com. 2018-04-18. Retrieved 2020-09-17.
  14. Ese Erheriene (May 7, 2019). "Casino Boom in Asia Pressures Vegas Operators: Region's new venues aim to draw gamblers beyond Macau, U.S. giants' longtime hub". Wall Street Journal. p. B5.
  15. Brewer, Contessa. "Concession awards mark a reset for Macao casinos". CNBC. CNBC. Retrieved 1 October 2023.
  16. Dumcius, Gintautas (May 28, 2019). "Wynn Resorts, CEO Matt Maddox won't appeal Mass. fines and conditions". Boston Business Journal. Retrieved May 29, 2019.
  17. Maddox, Matthew (November 9, 2021). "CEO Matt Maddox leaving Wynn Resorts". Las Vegas Review-Journal. Retrieved November 9, 2021.
  18. Palmeri, Christopher (March 24, 2022). "Wynn Resorts' New CEO Likes His Odds, Despite Macau Troubles". Bloomberg News.
  19. Kiviat, Barbara (2009-04-27). "When Companies Opt for Pay Cuts Instead of Layoffs". Time. ISSN 0040-781X. Retrieved 2018-03-19.
  20. "Steve Wynn doubles down on Macau with new $4B casino". CNBC. 22 August 2016. Retrieved 2018-03-19.
  21. Cliffor, Tyler (8 April 2021). "Wynn Resorts CEO says 60% of employees have been vaccinated, despite company not mandating shots". CNBC. Retrieved 13 April 2021.
  22. Wynn Resorts (14 February 2023). Wynn Resorts, INC (Report). SEC. Retrieved 1 October 2023.
  23. Brewer, Ray (28 September 2023). "Las Vegas Culinary Union says it won't hesitate to strike without new contracts". Las Vegas Sun. Retrieved 1 October 2023.
  24. "Wynn Resorts Wants to Bring 'Gaming' to the UAE". CNN. 27 January 2022. Retrieved 18 November 2022.
  25. "Wynn Ras Al Khaimah to open in 2026: Integrated Resort to be Bigger than Original in Las Vegas". Khaleej Times. 13 November 2022. Retrieved 18 November 2022.
  26. "Wynn Al Marjan Island unveils design vision". HN. 27 April 2023. Retrieved 29 April 2023.
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