Three of gaming’s biggest names— Wynn Resorts CEO Craig Billings, Sands Chairman and CEO Rob Goldstein and MGM Resorts International CEO Bill Hornbuckle—participated in the CNBC Evolve Global Summit on July 13, in which the trio reacted to current and future trends in the industry, including the impact of Covid, evolving player bases and predictions for the future.
The virtual panel was moderated by CNBC’s Contessa Brewer.
Perhaps the most common theme of the panel was the Covid-19 pandemic, and the impacts it has had and continues to have on the industry, especially in China, where all three companies have holdings.
When Covid first hit, legendary casino mogul Sheldon Adelson was still in charge of Sands, and Goldstein lauded his refusal to lay off employees, and how he always believed in “culture and longevity and sustainability with the staff, with the people working with us.” Goldstein added that he feels added responsibility to carry on and expand Adelson’s legacy since his passing in 2021.
MGM and Hornbuckle, however, have had a bit of a rockier road—Hornbuckle acknowledged that the virus “drove us to a couple different places,” including the “unfortunate task of laying off 62,000 employees.” However, half of those employees were able to return about 10 weeks later. Overall, Hornbuckle noted that Covid has given them an “organizational opportunity to kind of rethink about the structure, think about the organization, what we were focused on, what we should be focused on.”
Meanwhile, Billings said that Wynn “spent much of the Covid period really just continuing to invest,” which has “borne fruit” in today’s market. Like Goldstein, Billings also touched on the legacy of his company’s founder, Steve Wynn, in the sense that his departure before the pandemic forced the remaining staff to learn how to evolve and move forward while also maintaining “the core and soul of who the business is and who the team is.”
As far as Covid’s impact on economics, the trio were collectively bullish on the future prospects for both Las Vegas and Macau, the two premier gaming markets.
After selling off its Las Vegas properties last year, Sands now solely operates in Asia, but Goldstein is confident that Macau, which has had a “hard couple of years no question,” will return to and exceed peak revenue levels before long.
He added: “It’s a tough time. You got to basically hunker down and wait for it to turn. But the idea it doesn’t turn is kind of hard to imagine—it’s going to turn probably this year or next. And when it does, Macao will go back to making, you know, we made at the peak $3.5 billion EBITDA. I think we’ll make a lot more than that in the future there.”
The Strip, however, has experienced a much-needed boost in recent months, and Billings and Hornbuckle are both (expectedly) bullish that the recent success will continue. MGM in particular is the largest property owner on the strip, and Hornbuckle is “very positive” about the future of the market, especially through the rest of the year.
“Is there a recession around the corner? Time will tell,” said Hornbuckle. “You wouldn’t know by looking at this place last night, or what we’ve experienced over the last couple of quarters. And I think about the environment we’re in today in employment and getting people to come to work. It’s an interesting environment that we’re all in. But I’m extremely optimistic about the space, about the experience economy, and where we belong in it.”
Billings highlighted the fact that companies, especially large-scale international ones like Wynn, need to stay on their toes in order to change on the fly. He said that that flexibility is what saved them through the pandemic, and positioned them well in Las Vegas specifically.
“I think that that nimbleness, particularly as we flexed it during Covid, will pay dividends,” said Billings. “And so I really believe we are more wired as a company, particularly here in Las Vegas and in Boston than we ever have been. “
All three finished the panel by talking about the role of politics and social issues in business, and how the best course of action for a company hardly ever involves the opinions of CEOs and other executives.
“Consumers, particularly younger consumers, want companies to stand for something and they want them to do it authentically,” said Billings. “And I think that authenticity is what’s really important. So figuring out what you can do for your employees, for your communities, and to reduce your impact on the planet that you can really do. That’s what it’s about. And it’s not about marketing. It’s not performative. It’s doing. And so, I agree, I don’t think it’s about wading into politics. I think it’s about having an impact.”
