Wynn Resorts Focuses On Interactive Division While Land-Based Operations Remain Fragile

Article by : Helen Nov 18, 2020

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Updated: Apr 6, 2023

Wynn Resorts, a publicly traded corporation that runs Encore Boston Harbor Casino, Wynn Las Vegas, Wynn Macau, and some other huge gambling facilities, refocuses on its new online gambling division, while its land-based operations remain in a deep coma due to the coronavirus restrictions.

The company has recently released the report on the third quarter 2020 results that shows Wynn Resorts’ operating revenue for the third quarter totaled US$370.5 million. It is 77.5% or US$1.28 billion less than the results of the third quarter 2019. The company also reported a net loss of US$758.1 for the Q3 million compared to the net loss of only US$3.5 million for the same period last year. Adjusted Property EBITDA dropped to US$65.9 million from $396.9 million reported in Q3 2019.

Even though the land-based operations at Wynn Macau and Wynn Palace in Macau stopped for only 15 days in February, both facilities suffered from huge revenue drops in Q3 2020. This is the result of strict coronavirus restrictions that still remain in effect. These include certain travel restrictions to Macau, COVID-19 negative test results requirements, slot machine spacing, a limited number of seats per table, and temperature control.

Wynn Las Vegas boasts of a slightly better situation even despite its full closure between March 17, 2020, and June 4, 2020. The casino’s operating revenue was US$186.7 million, which is 53.3% less than the revenue of US$399.5 million generated during the third quarter of 2019. Since October 19, 2020, Encore at Wynn Las Vegas has been following an updated schedule, limiting the operating time to five days/four nights per week.

Encore Boston Harbor in Massachusetts generated operating revenue of US$116.7 million, compared to US$175.8 million in Q3 2019. However, the facility managed to triple Adjusted Property EBITDA, resulting in US$26.0 million. On November 2, Massachusetts Governor Charlie Baker issued a “stay-at-home” advisory that urges state residents to stop traveling by non-essential occasions between 10:00 pm and 5:00 am. The new order has already impacted the operating hours of the facility. Recently, WinnBET announced an Authorized Gaming Operator deal with NASCAR, meaning it has a new iGaming and sports betting department – Wynn Interactive.

On the development front, we have made substantial progress advancing Wynn Interactive, our majority-owned sports betting and online gaming subsidiary.

Wynn Interactive was launched in 2018 when the operator started its cooperation with UK-licensed BetBull LTD. After the reorganization, Wynn Interactive combines Wynn Sports, Wynn Slots social casino business, BetBull, and owns around 71% of JV. Winn also said: “We are providing $80 million in robust cash funding to fuel growth and expansion.” The operator is expanding its properties and currently is available in such States as Nevada and New Jersey. It is not required to cooperate with racing operators and have land-based casinos in Virginia and Tennessee, so the company is going to get a license here “on a standalone basis.” Changes have taken place in the company’s management as well. Currently, Sadok Kohen, a BetBull founder, was appointed to the post of president, and Matt Maddox, Wynn CEO, is Wynn Interactive’s chair. Ellen Whittemore, Craig Billings, and Norbert Teufelberger are the team’s directors. After the individual companies were merged and became Wynn Interactive, the combined revenue increased, reaching $21 million in 2019.