Wynn Resorts Reports Huge Casino Profits
July 30th, 2010
The iconic Wynn Las Vegas struggles, while its sister casinos in Macau rake it in.
While the recession may be slowing things down in Las Vegas, profits overseas are soaring for Wynn Resorts, Ltd. The casino operator, which owns Wynn Las Vegas on the Vegas strip, and a host of other properities, doubled its profits in Q2.
Most of the good news came from their casinos in Macau, the only place in China with legalized gambling. Wynn’s revenues there rose by 74%, with the amount spent on gambling on its properties rising by 72% versus the same period last year.
Interestingly, a lot of that extra profit came from something every gambler knows something about – runnning hot. The average house edge at a major casino is somewhere between 2.7 and 3% For Q2, Wynn’s Macau properties won 3.2%. And that little difference accounted for a big difference in their bottom line.
Despite the seemingly good news, and an annoucement that the company is cautiously optimistic about a rebound in Vegas, their share prices actually took a dip. And that’s pretty clear evidence that investors don’t necessarily see things in Vegas, and around the world, turning around right away.
