The president of Resorts World Las Vegas told Nevada gaming regulators Wednesday that the rollout of the $4.3 billion property, which opened on June 24 of last year, has been slowed by COVID-19, but he sees “a lot of light at the end of the tunnel” for 2022 with waning cases and the lifting of Nevada’s mask mandate in February.
Scott Sibella said the property has been “cash-flow positive” for 75% of its budget that would have hit 80% without COVID cases picking up. In addition, plans remain in the pipeline to expand the 3,500-room resort with more hotel rooms and convention space on the 88-acre site.
Last week, Inside Asian Gaming reported that analysts described the property’s ramp-up by Malaysia’s Genting Berhad as slower than expected. It cited analyst notes that the Las Vegas resort recorded about $170 million in revenue in the fourth quarter and adjusted earnings of $23 million – both of which were in line with the third quarter.
During Wednesday’s hearing on licensing company executives before the Nevada Gaming Control Board, Genting reported Resorts World Las Vegas generated $362 million in revenue in 2021 and $54 million in adjusted earnings.
The Board recommended the executives be licensed by the Nevada Gaming Commission when it meets on March 17. The individual licensing investigation was delayed in 2021 by the pandemic.
Sibella said that soon after the property opened, he and executives believed COVID-19 was behind them, but then the delta variant slowed momentum in the third quarter before the omicron variant hit in the fourth quarter.
“Every time we grow momentum, it seems new variants throw a wrench into our business,” Sibella said. “We knew we were the new guy on the block and we had to ramp up, but we’re excited with what we’re seeing now. Two weeks ago when the masks were removed, right away we started seeing increases in reservations. Groups are starting to come back. They never canceled, but they postponed, and now they’re moving into the later part of the year. All signs look good. We counted on the groups and we know how important the new Convention Center (expansion) is. When groups canceled or didn’t pick up their blocks, it definitely affected us.”
Sibella said that from past history when properties like Resorts World opened on the Strip, it took a year for things to really get going.
“It’s taking a little time, but things do look good,” Sibella said. “We see a lot of light at the end of the tunnel, and expect great things the rest of the year. We know things will eventually shift to the (north) Strip. We love what Fontainebleau is doing (restarting construction on the resort nearby) and the new Convention Center (expansion). We’re excited for the future of Resorts World.”
Sibella said an underground transportation link between Resorts World and the Convention Center is expected to open in April and hopes that Elon Musk, the owner of the Boring Company, will attend opening ceremonies.
“I think it’s a big event, not only for Resorts World, but Las Vegas,” Sibella said. “It will be the first property to have a Boring tunnel connecting the Convention Center to a hotel in the country.”
Resorts World has a 117,000-square-foot casino and 70,000 square feet of retail in its retail, restaurant, and entertainment corridor called the District. The property has nine pools for different types of guests, ranging from VIP to families.
Sibella told the board that the 5,000-seat theater that opened in December has had three residencies so far and almost all of the seats have been sold out.
No major changes are planned, but a top goal is building up the property’s database, partnering with the Convention Center, and serving as a headquarters for convention-goers.
“January was a little difficult because of (reduced attendance at) CES,” Sibella said. “We don’t have the database yet to mail and fill those voids like everybody else does down the Strip. We’re building it quickly and we know we’ll get there. We didn’t do this to be successful overnight. We’re here for the long run. We’re already planning on Phase Two. Our goal from the beginning was to open and ultimately get to more rooms and convention space.”
Sibella touted the property’s cashless approach and its wallet technology used for gaming and other purchases.
“We’re probably the most cashless casino on the Strip, and we’re probably at 85%. My goal is to get 95%. It will take longer in the casino. Everywhere you go throughout the property in retail outlets, there’s no cash. It’s all debit cards or credit cards, which helps with the employees’ balancing and theft.”
As for the gaming floor, Sibella said it’s a transition for people to move into cashless. It’s taken “a little while, but every day we sign up more people and they love what we have,” he said. “At blackjack, our dealers educate players that they don’t need to leave with chips. They can swipe on their phones or we can give them a voucher that can be used to go to dinner, another slot machine or the cage. It’s not rapidly taking off, but it’s slowly picking up and customers love it.”
