Wynn Has to Spend a Lot of Money to Stay Relevant in Las Vegas
$6,000 Welcome Bonus
Wynn has two casinos in Macau, the Wynn Macao and WynN Palace. Both resorts lost money in the final months of 2021. Maca accounted for 70% of Wynns' business three years ago. Wynner has to focus more on its Las Vegas business.
Las Vegas is different from other gaming communities in that it has a high cost of success. The potential operational deleveraging in an economic downturn is more extreme in Las Vegas.
Wynn is back to pre-pandemic maintenance costs of between $75 million to $85 million a year. The company is reconstructing the Le Reve theater at Wynn Las Vegas at a cost of about $120 million. It is also renovating the WynN Las Las Vega tower rooms with a total budget of $220 million, of which $ 120 million has been spent.
Wynn is enthusiastic about the prospects for Macau. The company is prepared to adapt and grow its business. Bloomberg reports that the local government is likely to demand new investment from companies like Wynn in order to keep operating there.
