Wynn Resorts’ CEO says that its Macau VIP direct business has been “generally unaffected by the legal changes that happened” and that “there’s really no legal or structural impediments” for the group to return to its previous levels or even “exceeding” them.
Craig Billings noted that the during the first quarter of the year “direct VIP turnover per day increased meaningfully” versus 1Q22 and that during the Golden Week holiday “direct VIP turnover was more than double 2019 levels”.
However, the CEO does caution that it’s “too early to forecast the overall trajectory of VIP, both direct and junket”.
Regarding player attraction, the CEO notes that the group has “developed some incremental relationships, player referral relationships outside of the traditional markets, and that’s part of the broader mandate to improve international visitation to Macau”.
Billings adds that regarding “the way we think about extending credit, none of that has changed”.
Wynn’s VIP play was driven more by its Cotai Strip property, Wynn Palace, during the quarter, also impacted by the closure of part of its Macau peninsula casino property for renovations, which were completed in 1Q22, while some salon renovations will continue but are expected to be completed “this quarter”.
The group’s CEO also noted that, while other operators are suffering labor shortages, Wynn’s Macau properties “have been operating at full capacity since the day the market reopened”, however the group is “probably light in a couple of labor categories, not high-dollar labor categories,” and that “our service levels certainly haven’t degraded versus 2019”.
Regarding the group’s MOP18 billion ($2.23 billion) pledged investment over the course of its 10-year license in Macau, Billings notes that the group is “deep into design and planning […] we look forward to telling you more in due course”.
Wynn Resorts Chief Financial Officer, Julie Cameron-Doe, notes that “these projects require a number of government approvals, creating a wide range of potential CapEx in the very near term. As such, for 2023, we continue to expect CapEx related to our concession commitments to range between $50 million to $220 million”.