Top executives at Wynn Resorts met with analysts from JP Morgan and, in remarks released late Friday, expressed confidence on a number of fronts, particularly sports betting.
WynnBet is live in 15 states and “in negotiation” in 24 others, according to lead JP Morgan analyst Joseph Greff. Chief Financial Officer Craig Billings, Treasurer Vince Zahn, and Vice President of Finance Amir Markowitz indicated particular pleasure with WynnBet’s day-one launch in Michigan this past January and its five percent market share in the Wolverine State.
They further estimated that WynnBet could capture between 20 percent and 30 percent of the Massachusetts market, thanks to the predominant financial position enjoyed by Encore Boston Harbor. However, sports betting legalization remains mired in the Massachusetts Legislature, due in part to a glut of competing bills — 23 in all. It took several legislative sessions for Massachusetts to legalize casino gambling, but LegalSportsReport.com took a sanguine view, stating that there is “plenty of time, as the Massachusetts Legislature does not adjourn until the end of the year.” It also cited the presence of sports betting in several adjoining states as motivation for Gov. Charlie Baker and lawmakers to act sometime in 2021.
As for WynnBet’s parent, Wynn Interactive, Billings and colleagues outlined a multi-point rationale for taking it public through a merger with Austerlitz Acquisition Group. They cited such virtues was growth potential spurred with public currency and a heightened ability to incentivize talent to stay with or join Wynn.
With regard to the Las Vegas Strip, the executive trio characterized business as strong, with demographics matching those from before the COVID-19 crisis. Having refrained from furloughing staff during the pandemic, the company said it was not experiencing the labor shortages that have affected some of its Strip competitors. MGM Resorts International, for one, has been advertising job fairs for the past month.
“Looking ahead, management remains optimistic that a recovery in midweek occupancy will come as conventions return” after June, wrote Greff.
As for Macao, where Wynn operates three casinos, Greff noted, “The story remains the same, with the recovery trajectory dictated by the pace at which the government reopens travels.” He did, however, report that trends had improved after Golden Week, which took place earlier this month, which surpassed Chinese New Year.
