While gaming analysts come to the table with widely differing views on the future economic situation in Las Vegas, top gaming executives, are, well, in the same boat. Many feel there is a bright future for the city, as they continue to adapt to the changing needs of the consumer. Wynn Resorts CEO Steve Wynn, is not as optimistic.
When Wynn Resorts had quarterly earnings posted in late April that showed a net revenue drop of 27.8 percent from the previous year, a $44.6 million net loss, and a quarterly dividend drop from $1.50 to 50 cents, Steve Wynn’s pessimism came to light. Wynn said, “If you were to ask me, since we’re making forward-looking statements, what will the second quarter look like in Las Vegas? Weak. Do you hear me? Weak. So, I’m trying to lower expectations here—this notion of a big recovery is a complete dream.
The company’s poor numbers point primarily to the slumping Macau market, which Wynn said is unclear when it will improve. On the other end of the spectrum is Caesars Entertainment CEO Gary Loveman, who finds encouragement in the conditions. MGM Resorts International CEO Jim Murren shares the same sentiments.
“Steve Wynn is a legend here in Las Vegas. He has created so much and I admire him a lot. I just don’t see what he sees.” Las Vegas Sands CEO Sheldon Adelson, who has his own problems he is dealing with in a wrongful termination lawsuit, said, “There is significant opportunity to improve our performance here in Las Vegas.” In an interview with political journalist Jon Ralston, Wynn said, “The idea that America is in the grips of a great recovery is pure fiction. It’s a lie. It’s not true.”
Union Gaming released a report around the time Wynn made his comments, and stated, “We firmly believe that the comments are largely a reflection of Wynn’s current experience in Las Vegas and not of the larger Las Vegas market.” Wynn has also made headlines with introducing a bill that will help sue those who speak ill of him.
Wynn has sued his critics at least four times over defamation claims. Marc Randazza, a First Amendment lawyer, referred to the bill as “an ignoble attempt to eviscerate” a law which helped Nevada bring media and tech firms in. “It drops Nevada from the gold standard to one that makes its protections lower than any other state.”
Companies, such as Yelp Inc., vehemently oppose the bill, claiming it attacks free speech. “It would be a tragedy if the state of Nevada allowed the interests of one man to gut a law that is meant to protect the freedom of speech for all Nevadans,” the company said.
