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Wynn Resorts battling as Covid-19 ruining business

Encore Boston Harbor. (Photo by Jim Mahoney)

Encore doing OK despite local restrictions, no sports betting

By JOSH RESNEK

Wynn Resorts is battling the COVID everywhere it owns a property.

The virus has ruined business.

In Everett, it has shattered the dream of a five-star Encore facility.

Only the locals are gambling at Encore, and this is not a preferred development for the company.

Another dream – that of sports betting as new revenue stream – has missed out again on Beacon Hill, where there is no chance that sports betting will be allowed in 2020 in Massachusetts.

In Las Vegas, a plethora of violence on the Strip and at all the major casinos and hotels has caused an out-pouring of fear among those who take their families to visit and to vacation as well as those who come to gamble.

There is not much fear here, but crime has increased, and the social standing of the younger clientele has decreased.

The Macau situation is the worst for Wynn Resorts right now because the numbers remain dismal.

This one fact causes a red flag to be flown at Wynn headquarters in Las Vegas, where executives are deeply concerned about the numbers.

The numbers everywhere are terrible to down.

The Macau numbers are especially important because they represent 75% Wynn’s total income.

Right now, it is holiday time in China, and with that, generally comes gi- ant swelling numbers from gaming revenues.

This is not happening right now.

Numbers are as way down right now as they were several months back when Macau reopened with all kinds of travel stipulations making financial success virtually impossible.

Everett’s figures, given all the difficulties of doing business with the virus as well as the state’s harsh and restrictive business policies has been remarkably strong.

The last reported figures revealed about $24 million in revenues during the last reported 30-day period.

Observers expect similar earnings here when earnings are reported for the Encore on the 15th.

There remains some ques- tion locally about whether or not the city has received the $10 million in lieu of tax payment that was late from Wynn Resorts.

The city does not communicate with the Leader Herald. However, it is believed if that money had been paid the city would have touted it.

Wynn’s stock price per share hovered around $73 Tuesday morning before the market opened.

Both its stock price and market cap – the value of all its outstanding stock – have dropped dramatically due to the virus and the vastly reduced income figures for the company.

Thousands have been laid off in Everett at Encore.

Stock analysts continue to believe very strongly in Wynn Resorts for this reason – the business can be electric, so to speak.

Wynn Resorts operations are all capable of generating embarrassing large amounts of cash revenues.

The numbers can and likely will blow through the roof rapidly when the virus catastrophe is over.

In the meantime, Wynn Resorts and the entire industry is slogging along, praying for an end to the virus, and trying to maintain a positive public face despite deplorable earnings.

Wynn Resorts market cap stood at slightly over $14 billion before the closure of the casinos and hotels.

Today, it stands at $7.6 billion.

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