Explosive growth expected in next six months
By JOSH RESNEK
Next week, the Massachusetts Gaming Commission will release monthly income stats for the state’s three casinos.
It is expected that Encore will again lead the pack, and by a dramatic margin.
Last month, Encore’s figures rose by $7 million.
The Leader Herald is predicting this month’s figures will come in at least at that amount and maybe as high as $10 million.
Our weekly observation of the casino and comments from casino employees reveals that business is up, noticeably in the casino.
Gaming set a record of sorts at the casino last week when a local man won $60,000 at the roulette wheel in a matter of minutes.
Hotel occupancy remains flat.
With air travel at a virtual standstill compared with the way it used to be, occupancy cannot expand meaningfully.
Industry analysts examining Wynn’s income figures for 2020 reported a dismal year for the gaming and hospitality giant.
The first quarter of 2021 isn’t much better.
However, analysts all seem to agree – gaming and travel, vacations and parties as well as dining-in restaurants are all going to eventually come back.
When? That is the question.
Analysts are nearly unanimous in their belief that casino and hotel businesses will soar during the next twelve months – and continue to soar almost geometrically as the world returns to the new normal.
This bodes well for Encore Boston Harbor.
Wynn stock remains artificially high.
How so?
Despite the worst earnings reports in years, despite the lowest revenue stream reported ever in a casino’s modern history, the prevailing thought is that pent-up demand for gambling and diversion will power casinos and their hotels for quite some time to come.
In other words, the pres- ent is bad. The recent past has been horrible. Wynn’s stock price at $128 the share late Tuesday is only 14 points away from its all-time high.
Wall Street’s belief in casinos is very high. Casinos’ ability to generate revenues and massive profits is just about unparalleled.
This is why Wynn’s stock remains unusually high and in a bull market.
The pandemic’s squeeze on the casino marketplace is gradually, slowly receding.
Casino employees at Encore are now 60% vaccinated, according to company officials.