By Sue Zeidler
Oct 24 Wynn Resorts Ltd Chairman Steve
Wynn said Caesars Entertainment Corp's withdrawal from a
$1 billion casino venture in Massachusetts was surprising and
would be discussed at his upcoming board meeting.
Caesars pulled out of its project after investigators from
the Massachusetts Gaming Commission raised concerns about its
suitability for a state gaming license.
Wynn is currently bidding for a Massachusetts license for a
casino that would be located in the Boston suburb of Everett.
"Who knows what's next there. Its very confusing. It's going
to be the subject of my board meeting on Monday and Tuesday as
to how we view Massachusetts," Wynn told analysts.
"Getting clarification on things is a cumbersome process.
It's been very challenging in Massachusetts.
"I'm not entirely comfortable being in this position, but it
is what it is," he said. "If you're in the gaming industry,
there's an assumption that you're unsavory. It burns me up quite
Caesars' application involved a casino venture with the
operator of Boston's Suffolk Downs racetrack.
Earlier, Wynn reported higher third quarter profit, boosted
by results at its operations in Macau, the Chinese gambling
enclave, although some analysts were disappointed by growth
there because it lagged the 20 percent overall market increase
in that period.
Wynn reported net income of $182 million, or $1.79 per
diluted share, compared with a net income of $112 million, or
$1.11 per diluted share a year earlier.
Revenue rose to $1.39 billion, driven by a 9.6 percent
increase in its Macau operations and a 1.1 percent increase at
its Las Vegas operations.
On an adjusted basis, earnings per share rose to $1.84,
beating analysts consensus estimates of $1.66 a share, according
to ThomsonReuters I/B/E/S.
Chad Mollman, an analyst with Morningstar Equity, said he
was disappointed by the Macau growth, and that the Las Vegas
results also reflected a slowdown because, although visitations
continued to trend higher, people gambled less per trip.
"Wynn has been late to recognize the significant Cotai Strip
opportunity (in Macao), and we expect it to lose share to other
Cotai Strip casinos," Mollman added.
Wynn is building Wynn Palace, a full-scale integrated resort
on Cotai, which it expects to open in 2016.