Wynn Resorts Macau Suffers Under Chinese Crackdown
Wynn Resorts’ profits have taken a sharp fall following a slowdown at its Macau operations. According to the company its net income for the three months to September was $73.8 million compared to $191.4 million last year.
The company’s Macau operations saw a 37.9% decrease in net revenue over the quarter. A crackdown on luxury spending by the Chinese government has seen a significant fall in spending in the Macau region, an area traditional favoured by mainland Chinese for shopping and gambling.
Nevada based Wynn owns 72.2% of Wynn Macau which operates a casino hotel resort. The company is also expected to open another property in Macau next year. China’s Communist Party prohibits officials from gambling but until President Xi Jinping’s crackdown on corruption and luxury spending began in 2012 officials reportedly frequented Macau’s casinos on a regular basis.