Wynn Resorts remains one of the biggest casino companies in the world. Unfortunately, this company has been seeing massive drops in revenue for almost all of 2020. New reports indicate the majority of Wynn Resorts’ revenue is coming from hotels in Las Vegas.
This is slightly surprising news to hear. Las Vegas has been facing major dips in tourism and gaming revenue this year. It still seems to be bringing in casino companies money, though.
Let’s take a look at the recent revenue reports for Wynn Resorts!
Tourism Rates in Las Vegas Are Beginning to Slow Down
The city of Las Vegas is known for its world-class casinos, incredible entertainment, and wild nightlife. Prior to 2020, this city was seeing tens of millions of tourists every year. Everything seemed to be going perfectly here.
This past March, the city was changed forever. In a move that previously seemed impossible, all of the casinos in Las Vegas were forced to shut down. The tourism industry came to a screeching halt, affecting a huge portion of the city’s workforce.
Tourism rates have begun to increase here over the past few months. These rates are still far lower than what was seen in 2019. A report in September claimed tourism was down by 55% when compared to last year.
Analysts now have a grim prediction for the winter months. Some feel that the rising cases of Covid-19 will end up severely cutting down on the city’s tourism industry. This is taking a toll on the casino-resorts here. Many have recently begun cutting down on their operating hours.
Park MGM and Encore Las Vegas have both seen their opening hours lessened. This is likely to take place with other casinos, as well. It’s an extremely difficult time for the companies that rely on tourism and gamblers.
New reports claim that Las Vegas is still playing a huge role in supporting major casino companies.
Las Vegas is Providing 50% of Wynn Resorts’ Revenue
No one can accurately say when things in Las Vegas will return to normal. Travel is decreasing around the country once again and less people are willing to visit major casino destinations. Most feel it will be months, if not years before a major uptick in tourism is seen here once again.
It’s clear that this city is still hugely important for major casino companies. This week, reports on Wynn Resorts’ revenue for the year’s third quarter finally came together. The company’s operating revenue from hotel-casinos in Las Vegas came to $187.6 million, down considerably from the $399.5 million earned in the same quarter in 2019.
“Encore at Wynn Las Vegas adjusted its operating schedule to five days/four nights each week due to currently reduced customer demand levels. We are currently unable to determine when certain of these measures will be lifted,” an official company statement said.
The reports show that the company’s operations in Las Vegas are proving about 50% of all revenue. With hotels in Macau still struggling, this city remains the most profitable destination for Wynn Resorts.
CEO Matt Maddox gave an optimistic statement about the city. He claims things are improving in different regions and expects the fourth-quarter earnings to improve. It will be interesting to see whether or not this statement ends up being true.
Overall, Wynn Resorts’ revenue earnings came to $370.45 million last quarter. It’s less than many analysts predicted, yet it remains more than some of the company’s competitors. Hope is that the casino industries in other states and countries will improve by mid-2021.
How Are Other Casino Companies Faring Right Now?
No one is surprised to see that Wynn Resorts has seen another drop in quarterly revenue earnings. This is a trend that all major casino companies are experiencing right now. Some companies are being hit harder than others.
Las Vegas Sands remains one of the world’s largest gaming companies. 2020 could be the year this company makes a major change, though. Reports recently surfaced that claim LVS is now interested in selling several of its biggest US properties.
Caesars Entertainment is taking a different approach. Instead of selling, this company has been focused on acquiring other gambling operators this year. Not long ago, Caesars purchased sports betting company William Hill for $3.7 billion.
Red Rock Resorts has been suffering considerably with the regulations and drop in tourism. Most of the company’s casinos are now open again. Unfortunately, several are expected to be closed permanently.
It’s an unprecedented time for the US casino industry. It’s not unreasonable to assume things will never truly return to normal for casino companies. We’ll continue offering revenue updates over the next few months!
Are you surprised to see Wynn Resorts’ revenue earnings fall? Do you expect things to improve in 2020’s fourth quarter? Let us know in the comments section below!