What happens in Vegas no longer stays in Vegas. It also happens in China. Wynn Resorts, the brainchild of gaming mogul and former Mirage Resorts chairman Steve Wynn, operates luxury casino resorts in Las Vegas and South China's Macau, the only place in China where gambling is legal. The company's Wynn Las Vegas is a $2.4 billion resort and casino, built on the site of the former Desert Inn on the Strip. Wynn Resorts operates in China through Wynn Macau Limited. The company has expanded in both markets, adding the Encore at Wynn Las Vegas next to the Wynn Las Vegas, and the Encore at Wynn Macau adjacent to Wynn Macau.
The company's Las Vegas properties boast more than 4,750 rooms, 2,430 slots and 240 table games, 186,000 square feet of casino gaming space, some 20 restaurants, a golf course, two wedding chapels, and a Ferrari and Maserati dealership. However, Wynn Resorts actually makes more money in China, where the economy is booming. Its Encore at Wynn Macau hotel and resort, a development that cost some $650 million, opened in 2010. The property includes more than 400 luxury suites and four villas, as well as restaurants, additional retail space, and additional VIP gaming space.
In 2011 the company reported 26% jump in revenues attributable to a 14% increase in Las Vegas revenues due in part to a 3% increase in average table games win percentage, and a 31% rise in Macau revenues thanks to an increase in both occupancy rate and room rates, as well as the inclusion of a full year of the 414 additional suites added with the opening of Encore at Wynn Macau in 2010.
Net income surged by 283% in 2011 thanks to higher revenues, a cut in depreciation expenses due to assets with a five-year life being fully depreciated in 2011 at Wynn Macau and assets with a five-year life being fully depreciated in 2010 at Wynn Las Vegas, as well as a decrease in 2011 general and administrative expenses.
While Las Vegas has been slower to recover from the economic downturn than other markets, gaming companies with operations in Asia saw stronger growth in 2011. Strong performance in China benefitted the company's earnings that year, when Wynn Resorts reported overall growth in revenues and net income.
The company previously raised some $1.6 billion in cash, when it sold 25% of its Macau operations in the 2009 IPO of Wynn Macau Limited on the Hong Kong Stock Exchange. These proceeds are being used to fund the construction of new resorts, as well as remodel older ones. The company has plans for a major new casino in Macau; the mega-resort could open in late 2014 or early 2015. Back in the US, in 2011 the company completed a project to remodel rooms at Wynn Las Vegas. It spent some $61 million on the upgrade.
In 2012 Steve Wynn and ex-wife Elaine Wynn each owned 10% of the company; Waddell & Reed Financial, Inc., owned 18%. Director nominees, and executive officers as a group owned 21%.
Steve Wynn has a long history working in the Las Vegas gaming industry, and is credited with building and/or refurbishing many of the properties on the Las Vegas Strip, including the Golden Nugget, The Mirage, and Treasure Island. His Wynn Resorts opened its first property, Wynn Las Vegas (formerly called Le Rêve, French for "The Dream"), in 2005. It next opened the $1.1 billion Wynn Macau in late 2006. – less