Delays in Wynn Resorts' capital expenditures due to imposed tariffs
Let's dive into the latest happenings with Wynn Resorts, a major player in the commercial casinos scene. We'll take a peek at their earnings, ongoing projects, and plans for expansion in key locations like New York City, Macau, and the UAE.
The United States 🇺🇸
Wynn Resorts faced a dip in earnings during the first quarter of 2025, but the operations in Wynn Las Vegas stayed strong. The EBITDA margin reached a healthy 35.7%, with an operating revenue of $625.3 million [3]. When compared to the Super Bowl weekend of the previous year, revenue and EBITDA increased by 5.4% and 2.7% respectively, demonstrating resilience [3].
Several renovation projects are underway, including the Encore Tower, Fairway Villas, Zero Bond, Golf Course Club House & Grill, and high limit table expansion [1]. However, the Encore Tower renovation has been postponed due to tariffs [4].
As for expansion, Wynn Resorts is keeping their cards close to their chest when it comes to New York City, but they're always on the lookout for strategic growth opportunities to diversify their revenue streams.
Macau 🇲🇴
Adverse financial performance was evident in Wynn Macau during the first quarter of 2025, with a decrease in Adjusted Property EBITDAR compared to the same period in 2024. Wynn Palace's operating revenues dropped by $51 million to $535.9 million in Q1 2025 [2][3]. Yet, Wynn Resorts continues to invest in Macau, driving operational success in certain segments.
Two concession capex projects are in progress: the Wynn Palace Event and Entertainment Center and Wynn Palace Theater and Resident Show. The estimated expenditure for 2025 is $250-300 million, increasing to $450-500 million in 2026 [1].
UAE 🇦🇪
Wynn Resorts is pouring resources into the Wynn Al Marjan Island project in the UAE. Remaining estimated equity contributions for the project fall between $650-$725 million [1]. This strategic move represents a significant expansion into the Middle East, aiming to extend their global footprint.
General Outlook
Despite near-term challenges and project delays, Wynn Resorts remains optimistic about future developments. CEO Craig Billings emphasized the "compelling development opportunities" and their commitment to long-term shareholder value creation [3]. With projects ongoing in various locations and a strong focus on strategic growth, Wynn Resorts is poised to continue its expansion across the globe.
- Wynn Resorts has postponed the renovation of the Encore Tower in Las Vegas due to the impact of tariffs on their business.
- Despite a decrease in Adjusted Property EBITDAR in Macau and the postponement of the Encore Tower renovation, Wynn Resorts is continuing to invest in strategic growth opportunities, including an expansion in the Middle East with the Wynn Al Marjan Island project.
- Wynn Resorts' CEO, Craig Billings, has expressed optimism about future developments, highlighting the potential for "compelling development opportunities" and their commitment to creating long-term shareholder value.
- In the face of near-term challenges and project delays, Wynn Resorts is also focusing on remodeling various facilities in Las Vegas, including the Encore Tower, Fairway Villas, Zero Bond, Golf Course Club House & Grill, and expanding high limit table areas.
