Wynn Resorts Granted Permission for New Macau Resort
Over the last ten years the southern Chinese city of Macau has firmly established itself as the centre of the game world. At present there are four major gaming centres and recently Wynn Resorts announced plans to spend $4 billion developing a new resort on the Cotai Strip in Macau.
Already on the Cotai Strip is the City of Dreams, consisting of the Crown and Hard Rock casinos, gamblers will find 500 tables and around 1,500 slot machines as well as three hotels, over twenty restaurants and bars and shows every night.
Plans for the new resort were granted in May and Wynn will be hoping that the new resort will strengthen its presence in Macau where they already operate the Wynn Macau and Encore. The resort will contain 2,000 rooms, 500 gaming tables and 10 restaurants.
Wynn’s main competition in Macau is Las Vegas Sands; they operate the Venetian Macau their flagship resort with over 3,000 suits, 1.6 million square feet of retail space, a concert hall and a gaming floor containing 870 tables and 4,400 slots. The also operate the Sands Macau, the Four Seasons Hotel and are currently building a brand new resort.
Also competing with Wynn is the Grand Lisboa belonging to Dr. Stanley Ho’s SJM Corporation containing 268 tables and 768 slots as well as the Galaxy Macau which has over 600 gaming tables, 1,200 slots and three hotels (the Galaxy, Hotel Okura and a Bayan Tree).
Around 60% of Wynn’s revenues come from their Macau resorts and it is thought that Macau contributes around 78% of Wynn’s current valuation. The new resort should be completed in 2015-2016 and is expected to greatly increase Wynn’s revenues. By the time the new resort is complete it is predicted that the Macau gaming market will have more than doubled to roughly $62.2 billion.