Inside Asian Gaming

May 2010 | INSIDE ASIAN GAMING 33 reservations), but without ceremony and without fireworks—the pyrotechnics being postponed until the following day. Announcement Given that Encore is the only new property opening in Macau this year, Mr Wynn took the opportunity not only to set out his stall for the future of his high roller offer in Macau, but also to talk about his much anticipated plans for further expansion in the market. MrWynn said construction on a Cotai project would start in 2011, with a possible opening before the end of 2013. He added it would Encore at Wynn Macau Macau Bound D uring a question and answer session with analysts and investors following the release of Wynn Resort Ltd’s Q1 2010 results, Steve Wynn said he planned to adjust his schedule to spend more time in Macau, where the bulk of his company’s revenues are produced. With Wynn’s Macau unit now listed on the Hong Kong Stock Exchange and the company making plans to build a third casino in Macau, Mr Wynn said his activities need to reflect and show respect for the company’s dependence on Asia. “I don’t intend to uproot everybody who works for me, but it’s becoming appropriate that I spend more of my time in Macau,” Mr Wynn said. “I intend to begin the process to switch that schedule.” During the run-up to the opening of Encore Macau, MrWynn told local media he was considering moving Wynn Resorts’ corporate headquarters to Macau because the bulk of the company’s business now comes from Asia—though the claim seems more a PR tactic than a realistic near-term possibility. He also criticized the economic policies of President Barack Obama, saying they had hurt American business development. Mr Wynn added plans for a Cotai resort in Macau would include a corporate headquarters. “I think that shows a respect for our company’s position in Macau,” he said. have only one hotel and a maximum of 450 gaming tables. That, in turn, could encourage Stanley Ho’s casino operating company to make firm plans for a Cotai property. Dr Ambrose So, SJM Chief Executive, said lastmonth he thought Cotai currently lacked sufficient “critical mass” to drive customers to the area and keep them there, and crucially to turn them into repeat visitors. But with ever greater numbers of visitors from the People’s Republic arriving directly at Cotai by road via the Lotus Bridge crossing point, rather than by ferry at the Macau peninsula, no operator can afford to ignore the potential of this important and growing southerly outpost of Macau’s casino infrastructure. Karen Tang of DB suggests that in order for Wynn to go full steam ahead with its Cotai project, the company will need assurances that its existing gaming concession will be extended beyond its current 2022 expiry date. “We believe the discussion is still in a preliminary stage,” suggests Ms Tang. Mr Wynn has previously been critical of his Nevada and Macau competitor, LVS, for building too much too quickly on Cotai and getting ahead of the underlying economic growth in China. “In the past few years, Cotai players have built very ambitious projects, but they had little experience in gaming,” Mr Wynn said on the eve of the Encore launch. “We have 42 years; and we will land on Cotai and the competition with all of that experience.” Sparkling performance—Steve Wynn watching the fireworks the day after Encore’s opening