Although gaming in Macau in general has been on the decline the past couple years, Wynn Resorts managed to improve its second quarter results in Macau.
Wynn Resorts earned $1.06 billion in revenues during the second quarter, while adjuster earnings rose almost 6 percent to $312.7 million. Its profits rose to $70.4 million, a nearly 25 percent increase.
Wynn told investors that analyzing and adjusting table games over the past year, plus selling hotel room blocks, have driven up revenues.
The hotel segment now is profiting at rates comparable to slots, Wynn told investors, and table games are taking in more money from roughly the same amount of bettors.
Traditionally, table games at best have profit margins in the teens, but Wynn Resorts, through highly detailed analysis of each table, has increased its profit margin to better than 40 percent on table games in Macau.
In Las Vegas, Wynn said table games generally have profit margins in the teens.
The detailed analysis of table games in Macau enabled Wynn Resorts to mine more money from its current roster of visitors, which had been dwindling in Macau due to the Chinese government’s recent crackdown on corruption and citizens taking gambling trips.
Wynn Resorts is opening its Wynn Palace casino in Macau on August 22 and expects to add 100 gaming tables.
