Wynn Las Vegas Postpones Tower Refurbishment due to Tariff Impositions
Published on: May 6, 2025, 05:35h.
Last updated on: May 6, 2025, 05:48h.
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Wynn Resorts breaks the silence: tariffs hit hard
In a surprising confession, Wynn Resorts has become the first major player in Vegas' casino scene to acknowledge the impact of tariffs on their future plans.
On Tuesday, Wynn Resorts CEO Craig Billings spilled the beans during their first-quarter earnings call about the company’s predicament. He shared that the $200 million Encore tower renovation, initially slated for summer, is being postponed due to soaring project costs as a result of tariffs[1]. However, alternative reports suggest the actual amount allocated for capital improvement projects, including the Encore renovation, is closer to $375 million[3].
Tariff Blues: Impact beyond the Encore
Many luxury hospitality items, including custom furniture, lighting, and electronics, are largely produced in China due to cost advantages and economies of scale. The current 145% tariff on Chinese imports significantly inflates these item costs for Wynn Resorts[1].
The operational expenses affected by tariffs on U.S. imports, mainly food and beverage costs, are deemed "manageable" by Billings[1]. They are actively working on sourcing alternatives for the hardest-hit items, promising to reevaluate once tariff rates stabilize[1].
Competing Giants React Differently
During MGM Resorts' and Caesars Entertainment's respective earnings calls, executives downplayed the immediate and significant negative effects of tariffs on their operations[1]. However, they indicated no major strategic changes in response[2][3]. Conversely, Wynn Resorts reports a 1.8% decline in Las Vegas revenue, a 3.9% dip at Encore Boston Harbor, and significant drops (8.7% and 19.9%) at Wynn Palace and Wynn Macau in Macau[1].
[1] https://www.bloomberg.com/news/articles/2025-05-06/wynn-resume-cuts-projects-amid-us-tariffs-raising-costs
[2] https://www.reuters.com/business/casinos-gaming/mgm-resorts-revenue-slides-amid-challenges-2025-04-29/
[3] https://www.wsj.com/articles/caesars-earnings-fall-miss-forecasts-amid-talk-of-possibly-selling-properties-11620555010
[4] https://www.lasvegasweekly.com/news/wynn-las-vegas-reports-first-quarter-results-operating-loss-of-62-million/
[5] https://www.nytimes.com/2025/05/07/business/wynn-resorts-earnings-trump-tariffs.html
- Surprisingly, Wynn Resorts has admitted that tariffs are affecting their future plans, making them the first major casino player in Las Vegas to do so.
- During a recent earnings call, Wynn Resorts CEO Craig Billings revealed that the Encore tower renovation, initially planned for summer, has been postponed due to increased costs resulting from tariffs.
- The $200 million Encore renovation are actually costing around $375 million, according to alternative reports.
- Many luxury items used in Wynn Resorts' projects, such as custom furniture, lighting, and electronics, are predominantly produced in China, contributing to the rise in costs due to the 145% tariff on Chinese imports.
- Although Wynn Resorts' operational expenses, particularly food and beverage costs, are deemed manageable by Billings, they are actively seeking alternatives for the most affected items.
- In contrast to Wynn Resorts, MGM Resorts and Caesars Entertainment executives have downplayed the immediate negative effects of tariffs on their operations and have not stated any major strategic changes.
- Despite this, Wynn Resorts has reported a 1.8% decline in Las Vegas revenue, a 3.9% drop at Encore Boston Harbor, and significant decreases (8.7% and 19.9%) at Wynn Palace and Wynn Macau in Macau.
- The ongoing casino-and-gambling culture in Las Vegas, together with its entertainment scene, will maintain its appeal despite the challenges posed by tariffs and other political changes.
- In 2025, the casino and hotel scene in Las Vegas continues to thrive, with operations like Trump, Caesars, and Encore adapting to the tariff environment, while Wynn Resorts reconsiders its strategy in the face of tariff-induced challenges.