Inside Asian Gaming

16 Wynn Results I f Wynn Macau really was designed as a niche premium product as its president Ian Coughlan suggested recently, then it seems to have got a lot more premium judging by Wynn Resorts’ fourth quarter results for 2007. Its revenue fromVIP gaming leapt 69.6% in Q4 2007, compared with the same period the previous year.VIP table dropwas US$11.2 billion for the period, compared to US$6.6 billion for Q4 2006. The devil, as always, is in the detail. The company’s win on that US$11.2 billion gambled by VIPs was only 3.1%, and Wynn isn’t saying how much it’s paying the junket operators in incentives and commissions in return for that business. This is all against a background of Crown Macau starting what amountstoacommissionwaronVIPbusiness in Macau when it launched a scheme with a subsidiary of A-Max Holdings before Christmas to provide 1.35% commission on VIP rolling chip turnover with the additional fillip of daily settlement. Under these circumstances, operators may need to hedge their bets with the mass-market trade. Although Wynn Macau’s mass market table drop was down 1.2% year-on-year from US$513.8 million to US$507.6 million, its win on that revenue was 19.1%, though discounts from items such as player loyalty schemes must also be factored in before net turnover can be calculated. It’s safe to assume that pro rata the discounting on the mass-market revenue will be a lot smaller. Drowning or Waving? Wynn Macau’s spurt in VIP turnover may not be as beneficial as it seems