Wynn Resorts a popular casino operator in Macau is revamping its gaming floor of its Wynn Palace in order to boost excitement among mass-market gamblers.
As per a recent report from Dan Wasiolek, a senior equity analyst, which was posted on Monday on Morningstar’s corporate website he said “We now believe that the [Wynn] Palace’s slow ramp-up is also due to the design of its large and open casino space, which is leading to the perception of thin crowds and thereby reducing the feel of compressed energy that many gamers seek.”
As per the reports Wynn Palace badly needs revamping so that the gamblers won’t be imagining things if they feel the walls are starting to close in on them. This is the reason Wynn management plans to “adjust wall configuration to reduce [Wynn Palace’s] gaming area while increasing casual dining options to meet demand.” In addition to this few observers even said that the uber luxurious Wynn Palace’s focus on VIP gamblers leaves no space in the broader Macau market’s ongoing shift to an emphasis on mass market gamblers.
Mr. Wasiolek said: “While the near-term presents challenge for the Palace, our constructive long-term view of the property is unchanged, as is our forecast for low 30s EBITDA margins in 2025 and mid-single-digit annual revenue growth in 2018-25. We believe the facility’s stunning decor will prove enticing to many high-income travelers.”
He added that 2019 could be a significant year for Macau, with the possible completion of the Taipa section of the light rail, serving the Cotai resorts; and of the Hong Kong-Zhuhai-Macau Bridge, which will span the Pearl River Delta and will dramatically reduce the road travel times between Hong Kong and its large airport, and Macau. The light rail system could “expand Macau’s [annual inbound tourist] capacity by around 3.5 million in 2025,” suggested the Morningstar analyst.
Several other analysts also stated that Macau gaming sector has previously mentioned that Wynn Palace which opened its gates on August 22 had experienced a slow ramp up particularly for its mass market business. As per them, it has been influenced by factors including accessibility to the site which is off Cotai Strip and is currently affected at the front of the property by ongoing work for Macau’s light rail system.
