Mogul: OK to gripe about government
Steve Wynn says his $4.1 billion Wynn Palace in Macau will not open as planned on March 25 because of a snag in construction. The casino legend also defended his recent dustup with the government of Macau, saying it’s “OK to complain” about policy in the world’s No. 1 gaming town.
Speaking to the Las Vegas Sun, Wynn said the new opening date of his Cotai resort is June 25, three months later than originally scheduled; the builder, Leighton Holdings, forfeited a $38 million completion because of the delay, and it will incur big fines if there are additional holdups.
“I got misled by my builder, and not in a mean way,” said Wynn. “They just bumped into some problems. But the furniture has been ordered and the fountains have been tested.”
Wynn Palace will feature 1,700 hotel rooms, a lake with gondolas, a meeting space, a casino, a spa, restaurants and retail outlets. The resort will face competition from other resorts in the region including Galaxy Entertainment’s Phase II and Broadway expansions; Melco Crown Entertainment’s new Studio City, which opened in October; and other lavish resorts now under construction by Las Vegas Sands Corp. and MGM Resorts International.
To say Leighton is under pressure is an understatement. “If they don’t make June 25, it’s a $1.5 million-a-day penalty,” Wynn said. “If they don’t have the first five floors done by December 24, it’s $200,000 a day. Then, on January 24, if they don’t have the next 10 floors, it’s $200,000 a day.”
Wynn also dismissed suggestions he is at odds with the government of Macau. During an October earnings call, he was clearly frustrated at the city’s 3 percent annual table cap and lashed out at the policy, calling it “outrageous” and “preposterous.” Shortly thereafter, Wynn executives were summoned to a meeting with Macau regulators, who later reminded the industry it would demand full compliance of the city’s dominant industry.
“I was probably a little tougher on (the government) than I should have been on the conference call,” Wynn told the Sun. “They have their way of looking at it, which is not the same way a businessman has of looking at it. … But look, I have made promises to the people over there, and it’s only fair that they help me keep those promises. But it wasn’t as serious as everyone made it out to be: ‘Wynn blasts government.’
“I didn’t blast anybody. I’ve been their fair-haired boy in Macau since Day One. But it’s OK to complain a little. It’s OK to have a different point of view.”
