Casinos struggling worldwide
By JOSH RESNEK
Weak demand is plaguing the gambling industry throughout the world.
Everett should be concerned as the world of gambling includes Encore.
Business is down 95% from what it was last year at this time in Macau, where Wynn Resorts normally earns about 75% of its income.
Although Macau opened several weeks back, crowds have not materialized nor have hotel bookings although Wynn executives are expecting a modest turnaround as China relaxes quarantine rules.
The situations in Las Vegas and at Encore in Everett have also been catastrophic for May and June this year as compared with this time period last year.
With everything added up, Wynn Resorts has had a decline in revenue of 81.7% company-wide and will likely post earnings of a loss of $4.97 a share against earnings of $1.44 per share reported in the prior year quarter.
That is a dramatic runaround heading in the wrong direction.
Wynn Resorts second-quarter results are likely to reflect the significant impact of the coronavirus pandemic on its operations. Even though the company has resumed operations at a majority of its gaming properties, dismal traffic due to social-distancing protocols might have negatively impacted the to-be-reported quarter’s performance.
Although casinos have been opened in Macao from March 20, travel restrictions and limited number of tables have been hurting the company.
Dismal performance at Encore Boston Harbor, Wynn Palace, Wynn Macau, Las Vegas operations and Encore Boston Harbor may have significantly affected the second-quarter performance.
The upcoming third quarter is not expected to be much better, according to casino analysts who closely follows the industry.
Visitations to all of Wynn
Resorts properties have been marginal following expen- sive and labor-intensive re- opening.
Encore in Everett has been extremely slow, with very few reservations being made for the hotel which is open only four days a week.
Thisareflectionofthelack of an international tourist season building in Greater Boston.
It is also a reflection of the continuing epidemic and its effect on peoples’ traveling and spending habits.
Employees at Encore tell the Leader Herald light foot traffic is heading into the complex daily.
Our own visits to the complex last week revealed a virtually empty facility Monday through Thursday during the day and night.