According to a report published by Forbes Magazine on January 7, 2015, Wynn is one of the several resorts looking to diversify its portfolio in the US. The company won a bid in September 2014 to build a casino beyond the city limits of Boston. With a project size of $1.6 billion, the resort is in the initial stages of construction and is likely to open by late 2017. Mohegan Sun was the primary competitor for Wynn Resorts for this bid. The Massachusetts Gaming Commission (MGC) picked the latter, owing to better paying employment opportunities and Wynn’s outline to renovate the barren industrial land.
Las Vegas: Slow but Steady
The rate of growth in Las Vegas has declined considerably, and has sunk below that of Macau. Drawing comparisons from 2010 to 2014, Macau has seen growth from $24 billion to $44 billion. For instance, the Las Vegas Sands prides itself with two properties. Looking at the revenues from 2011 to 2013, growth was only marginal, increasing from $431 million to $584 million. This is the case with many other operators in Las Vegas. Although there is growth projection for 2015, it will be inevitably slow. Why?
Apart from the decline in disposable income during the economic crisis, the fall in Vegas also correlates with the growth around the country. Vegas once enjoyed monopoly in the global gaming arena. However, the story today is quite different. Other states have also legalized casinos, like Pennsylvania and Delaware, where blackjack and other table games have been added to the mix. All this has had an unfavourable effect on the influx of tourists, causing a dip in gaming activities in the erstwhile gaming capital.
The Tidings for Destination Asia
The tidings for 2015 show that Asia will continue to be at the epicentre of the global gaming scenario. This is because both the developers and the government are set to cash in on the ten-figure cheques from the Asian markets. This includes revenues from strips like Vladivostok, Cambodia and Saipan.
Of course, Macau will continue to be the reigning champion. Major operators from Las Vegas have already sunk their claws into the rich treasures that this city has to offer. Wynn, MGM and Las Vegas Sands are on the verge of opening new properties to increase their hold on the Asian markets. In fact, Wynn Palace is schedule to open by late 2015 or early 2016. This massive $3.5 billion project will house 2,000 hotel rooms and 400 gaming tables.
A Tough Fight
Despite the positive developments, one cannot overlook the tough struggle in Macau. With the anti-corruption onslaught witnessed in 2014, the high-rolling VIPs strayed away from the gambling scene. This caused gaming revenues to drop by 2.60%.
However, experts claim that although growth might not spike immediately in the beginning of 2015, the latter half will make up for lost time. Being the only place in China where gambling is legal, high net worth individuals are bound to be back behind the green felt. The combined wealth of the high net worth individuals in China is over $4.3 trillion, which increases the odds of people visiting Macau to indulge in a bit of gaming.
The Japanese Frontier
While the government of Macau handles corruption, the Japanese government is moving closer to legalising casinos in the bustling country. Wynn, MGM Resorts and Las Vegas Sands are driving towards the Japanese frontier like moths to a flame! Development projects are set to commence in Osaka and Tokyo. Wynn is ready to shell out close to $4 billion to win the bid for a gaming license. A study conducted by Asian equity investment group CLSA shows that the Japanese gambling scene has the potential to generate over $40 billion annually. This is a positive note for 2015 and the years that will follow!