Work Begins on New $4 Billion Wynn Macau Resort
Last week Steve Wynn, the U.S. casino magnate, revealed that Wynn Macau Ltd.’s latest resort is going to cost $4 billion. This is a clear indicator that the company believes there will be further growth in the world’s largest gambling resort.
During a media briefing held at his Macau Casino, Wynn also said that he is confident that the property will provide a return on investment despite the current economic situation. In a seemingly contradictory statement Wynn said that “growth of the market has been so spectacular, the expansion so dramatic, it is unrealistic for it to continue at that rate”. However, he pointed out that it can still be a good place to do business without growth continuing at the current pace.
Macau has proved to be a goldmine for casino operators. It makes more than five times the revenue that Vegas generates as millions of visitors regularly go to the only Chinese city where casino gambling is legal.
In recent years Wynn and other operators such as Sheldon Adelson’s Las Vegas Sands have been rushing to expand in the casino enclave as there is limited space for building new projects. Wynn has broken ground on its 51-acre site which puts it ahead of rivals including MGM and Macau kingpin Stanley Ho’s SJM Holdings who are still waiting for government approval for their projects.
Wynn was granted permission from the government in early May, on Tuesday it was confirmed that financing for the project would come together in the next few weeks and that they are expecting to be ready to open in 2016.
After the last week’s media briefing shares for Wynn Macau were up 1.4 percent in Hong Kong ahead of a 0.5 percent gain in the benchmark index.