Wynn Outlines Growth Prospectshttp://www.fool.com/investing/general/2012/03/05/wynn-outlines-growth-prospects.aspx Travis Hoium
March 5, 2012
Shares of Wynn Resorts (Nasdaq: WYNN ) have been on a tear recently, due to speculation about the company's upcoming growth plans. Last week, the company outlined a potential resort and casino near the New England Patriots' home in Foxboro, Mass., and for a second we thought the company made another step forward in expanding in Macau.
Football : Gambling :: Apple pie : America
This is another example of expanding gaming throughout the U.S., something that largely hasn't helped gaming as a whole. Foxwoods and Mohegan Sun, which attract Massachusetts customers, are already worried about new competition after business fell off during the recession. In a relatively small area we have Las Vegas Sands' (NYSE: LVS ) Pennsylvania casino, Atlantic City, tribal casinos, and a slew of racetracks in the northeast. Recent earnings reports from Caesars Entertainment (Nasdaq: CZR ) , Boyd Gaming, and Penn National show that fighting for regional casinos isn't as profitable as it once was.
An expansion into Massachusetts might be a profitable move for Wynn Resorts, but Las Vegas Sands has proven in Pennsylvania that it isn't like the other opportunity in Macau.
Cotai on the mind
Even if it was a mistake, we can read between the lines and assume a land concession deal is likely coming in the near future. Wynn has been waiting on the Macau government to start construction in earnest, and with Sands Cotai Central opening in about a month, the timing seems about right.