Wynn Resorts shares skyrocketed following the acquisition of a 6.1% interest in the company by billionaire Tilman Fertitta, proprietor of the Golden Nugget. The share price climbed 11% to $65.13 (£56.43/€65.57) per share.
Fertitta, who boasts extensive experience in the hospitality and gaming sectors through his possession of the Golden Nugget casino chain, secured 6.9 million shares of the Las Vegas-based firm, elevating him to the position of second-largest individual investor in Wynn Resorts, trailing only Elaine Wynn, who maintains a 9% stake.
The market responded favorably to the news, with Wynn’s stock price experiencing fluctuations. The company’s stock has depreciated by 51.5% since May 2021, as it has been adversely affected by the historically weak gaming environment in Macau, where Wynn holds a substantial presence as one of six concessionaires.
In the company’s second-quarter financial report, Wynn Resorts’ losses expanded by 23.1% to $213.4 million from $173.3 million. Despite this setback, CEO Craig Billings remains optimistic about the long-term prospects of the region.
“In Macau, while COVID-19 related travel limitations continue to influence our outcomes, we retain confidence in the market’s ability to benefit from the resurgence of visitor volume over time,” he stated.
In spite of this, Macau is exhibiting signs of improvement, with income increasing by over 30% from one month to the next, providing a ray of optimism. Beginning today, online visa rules will be eased, which will revitalize the city’s brick-and-mortar gaming sector. Nevertheless, uncertainty persists, as demonstrated by the recent outbreak and closure at MGM Macau.
Tilman Fertitta, proprietor of the Houston Rockets, ventured into the hotel business for the first time after acquiring the Galveston Island’s San Luis Resort, Spa & Conference Center in Texas. This occurred after his publicly traded firm, Landry’s, purchased the Golden Nugget casino chain in 2005.
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