Wynn Resorts is placing a lot of focus right now on developing its new digital division, to bolster its profits. The US casino operators’ land-based casinos have suffered significant losses, due to the 3-month shutdown and ongoing COVID-19 restrictions.
During the third quarter, the company reported revenue of $ 370.5 million, which represents a 77.5% drop compared to the third quarter last year.
The company reported negative earnings of almost $66 million compared to a positive earning of $397 million in Q3 2019. Wynn recorded a net loss of more than $758 million, however, $407.4 million of that was in taxes.
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Macao Properties Lose Too
Revenues crashed for the Wynn Macao by more than 89% to $ 51.4 million, resulting in a negative profit of $ 34.5 million. But the revenue loss at the Wynn Palace was much worse, plunging 97.4% for a profit loss of $ 77.6 million.
In both of the Macao casinos, the biggest losses were incurred in the VIP gaming sector. The Palace took the biggest hit, with a VIP win rate of only 1.04%. However, the Macau helped to off-set that, with a win rate of 3.95%. Both properties reported huge revenue declines at the table games.
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US Properties Take a Hit
Needless to say, Wynn’s US properties suffered significant revenue losses, due to the mandated shutdowns and ongoing COVID-19 restrictions.
In Las Vegas, revenues fell by 53.3% to $186.7 million, while company earnings fell 77% to $20.3 million.
Wynn’s Encore casino-resort on the Las Vegas Strip recently cut its operating schedule to five days and four nights per week, due to reduced demand by tourists. Fortunately, the Wynn Las Vegas, also on the Strip, remains open 24/7.
The company’s Boston property, the Encore Boston Harbor Casino, reported revenue of $ 116.7 million, around a third lower than last year’s revenue. The good news for the Boston property, which just opened last summer, is that earnings more than tripled to $26 million. That’s because the property is now free of its initial start-up costs. The bad news for the Boston property is that the Massachusetts state government announced new COVID-19 restrictions, limiting the hours of operation for casinos.
Betting on Wynn Interactive
Like MGM International and BetMGM, Wynn is now concentrating its efforts on Wynn Interactive, the company’s iGaming and sports betting app. The company’s fledgling digital division appears to be on the upswing, recently signing a deal with NASCAR making the company an Authorized Gaming Operator.
Beginning just two years ago, Wynn Sports Interactive is a joint venture with UK-based BetBull Ltd. BetBull’s operations in the UK have been folded into Wynn Sports Interactive and WynnSlots. Wynn owns more than 70% of this joint venture, and plans to further consolidate it in the near future.
Moreover, Wynn has invested $ 80 million to drive growth and expand its digital properties, as part of the company’s reorganization. Already operating in New Jersey and Nevada, WynnInteractive has already seen revenue of $21 million this last year.
The company plans to apply for a license in Tennessee and Virginia as WynnBET. In those states, there is no requirement to operate a land-based casino or race track to apply for a digital gambling license.
The company has already secured market access in nine states, including Massachusetts, Illinois, and Florida, which have not yet legalized online gambling. The company also plans to expand its digital operations to Colorado, Indiana, and Michigan in the coming months.
On a similar note, Caesars Entertainment recently announced plans for a single Caesars iGaming app that would allow US customers to earn loyalty points both online and at its casinos.
This year, Caesars’ online business in New Jersey is slated to deliver $150 million in revenue. In addition to its digital sportsbooks, Caesars will operate retail sportsbooks under the Caesars brand at its hotels, but use the William Hill brand, which the company owns, at other casinos.
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