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Wynn: This Is What Happens When You Squeeze A Gambler's Nuts

By Chuckmonster on Tuesday, 5th April 2016 8:13pm
  » filed under Las Vegas  comments: 5


Wynn Resorts just released preliminary results for Q1 business in Las Vegas and Macau. Normally, I wouldn't spend a lot of time on earnings results, but these numbers are worth studying and discussing, particularly related to the Steve's boastful slicing and dicing of casino odds last year.

So how did they do?


Table Games

This quarter (Q1) is one of the last that will contain a year-over-year comparison of casino results from before Wynn "raised the price" on casino games by cutting craps odds and moving player friendly games to less desirable locations.

This quarter also includes the addition of the Encore Players Club, which Wynn stated was doing great business.

Table Games

With the number of casino tables staying the same, the table drop (the amount of cash and markers dropped into the tables cash box) was down by a staggering 20.7%. The cash amount of win was also down 8.5%. The win %, strangely, was up by 9.8%. Win per unit per day held steady. In a nutshell, there was much less play at Wynn & Encore and less profit too. The play they did have yielded a higher winning percentage for the house. Did the very public news of Wynn tightening the purse strings at their casino scare patrons out of the casino?


For the period, Wynn increased their total number of slot machine positions by about 35 positions, a 1.85% increase. This includes the removal of the machines taken out to accommodate the Encore Players Club.


Slot handle (the total amount of money cycled machines) decreased by 6.2%. The win, increased by 2.35%. The amount of win per machine per day held steady. Wynn has put more machines on the floor, which, despite being played less are making more profit - they tightened up the slots.



Occupancy at Wynn & Encore is down from 83% to 81.7%. Conversely, the average daily room rates increased 5% from $283 to $298. These two fluctuations combined to yield a 3.2% increase in revenue per room (REVPAR). This is a classic chicken or the egg scenario. Did the room rate increase cause the occupancy dip or did Wynn amplify room rates when they saw softness in occupancy.

Q1 features boffo business from The NFL playoffs, The Super Bowl, Chinese Lunar New Year and NCAA Final Four weekends, all of which are high demand events in Las Vegas.

Wynn stock is down 2.66% today, and another 1.67% after hours.

I think we now know what the meeting tomorrow is going to be about... Macau.

Tagged: wynn   casino   steve wynn show   craps   odds   gambling   casino biz   


Comments & Discussion:

I think you've got the logic a little backwards. There's less and less people in the casino, therefore the people that remain are getting squeezed. Your average Vegas conventioneer or wedding party etc generally isn't paying attention to news, even very public news, of shifting odds.

Why there's less and less people in the casino, though, we've discussed that a lot and it's a lot of the same themes we've heard regarding millennials, tech, etc. The golden age of Wynncore was eight years ago; since then gambling citywide has declined, the demographic that does gamble gets older, and the younger generation that's coming up doesn't feel any additional thrill at the chances of winning real money and would rather just watch games on their phones for minimal risk. I've sometimes wondered if the boom of ADHD in the 90s (one affect of which is a lowered dopamine lowering desire for rewards and increasing disinterest/apathy for reward-driven behavior) has some effect on it.

Whatever the reason though, fewer people are enthused to gamble money for entertainment, and after they lose much fewer still are willing to keep gambling to try and win their money back.

Possibly. I'm really thinking bigger players, rollers who know the games and play enough to have an affect on the bottom line, may have taken their play elsewhere. Then again, those guys probably get redemptions or special considerations regarding odds etc.. I wonder if it would have been even worse had Steve not monkey wrenched the odds.

I was going to say, I'm pretty sure those sky casino guys have better odds than the usual tables. They know they're welcome somewhere else.

It needs to be remembered, Mirage Resorts never offered the best gamble in town to the average visitor. You definitely took a hit on odds, a hit on paytables to be playing amongst rainforests and Cirque in those days. WLV was actually sort of a surprise, in that they had quarter slots and the like, and people who played them actually got offers. Strip Walk started because WLV was sending me(!!!) weekly cashback deals under some sort of locals outreach.

When I was at Encore in November the craps dealers told me that the odds limit didn't apply if you bet $1k or more on your initial bet.

I have talked to 4 players who have very high 6 figure LOC's at Wynn and One who has a 1.5M line.
They are pissed. They are NOT getting any better odds than anyone who plays in the HL room.
Their bitching resulted in the 3-4-5 table in the hosts office front but was not well received.
Too many big craps players want a reserved table or 1/2 a reserved table and actually choose to play on the floor since craps tables are not plentiful in the HL room.
While bacc may be the game of choice, alternate games are still played as a diversion or break etc.
The private salons are not as utilized, at least by these guys as one might think.
And one of these guys stays in the Mansion, so Wynn is not doing the higher end players well. At all.

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