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Las Vegas Lets Wynn Resorts Operate at 100% Capacity Ahead of Other Casinos

By Rich Duprey - May 5, 2021 at 12:01PM

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The company showed that 88% of its employees have been vaccinated.

Wynn Resorts (WYNN 3.40%) got permission from Las Vegas regulators to begin operating at 100% capacity, while other casinos are limited to just 80%, because almost all of Wynn's employees have been vaccinated.

Wynn was one of the first casino operators to develop a response plan for the pandemic, and it has been encouraging employees to receive the vaccine. The company was able to show the Nevada Gaming Control Board that 88% of its employees have been vaccinated, and the board will let it fully open.

The state is looking at a July 1 target date to let the rest of the casinos operate at 100% capacity.

Couple throwing dice at craps table

Image source: Getty Images.

The decision means the Wynn and Encore resorts can remove the Plexiglas dividers from their casino floor, though the resort operator noted its employees will still "follow health and safety guidelines, including mask compliance, to ensure a safe and comfortable environment for all."

While being allowed to be fully operational could give Wynn something of a competitive edge, it may still be constrained by lower visitation rates

Visitor volume in March, the latest data available, was 40% below 2019 levels, and hotel occupancy is down almost a like amount. Average daily room rates are off by 55%, and airport passenger traffic is down 42%.

Wynn Resorts reported a near 60% drop in revenue for the fourth quarter, and first-quarter revenue is likely to be depressed, too. Growing rates of vaccinations around the country, though, should help consumers become more comfortable again in visiting places like Las Vegas, and with Wynn's ability to operate at 100% capacity, that may allow it to start its recovery ahead of other casinos.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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