Gaming at the Las Vegas strip saw its peak in 2007 however, the figures declined in 2009. It can also be associated with the consequent fall in the consumer discretionary spending and economic recession. The casino industry of Las Vegas faced the worst hit by economic slowdown and since then has not been able to reach its former peak. Gaming in the area began rebounding since 2010 and revenues started blossoming. While it has led to steady growth of revenue for casino operators like Las Vegas Sands, MGM Resorts and Wynn Resorts, the casino industry is experiencing changes. The future of growth in the region is not certain yet because some other states have recently legalized casinos, providing the gamblers with multiple alternatives. Besides, Macau has also witnessed a great growth in gaming since a few past years now. Also, Japan has the potential of offering a good opportunity for casino operators for expanding in the Eastern part of Asia. On this note, below is a discussion regarding these 3 markets from the perspective of gaming and how Wynn Resorts is up to expanding their casino operations.
Las Vegas Sands owns 2 properties on the Strip; The Palazzo and the Venetian Las Vegas. The revenues from the both casinos have increased in the last five years. Whereas, the Wynn Resorts also operate 2 properties in region called as Encore and Wynn Las Vegas and both of these properties have also witnessed an increase in revenues over the years.
The MGM Resorts operate a total of 15 resorts in U.S.A. and the company has witnessed a similar growth over past few years. However, the rate of growth at Las Vegas Strip did not live up to expectations in comparison with the largest gambling hub in the world; Macau. The gaming revenues have rapidly increased in past years whereas MGM and Las Vegas Sands have also witnessed the double revenues from their Macau casinos.
There are multiple reasons for slow growth of Las Vegas Strip. The decline in disposable income during economic crisis hit the Strip hard. Meanwhile the legalization of casinos in other strips also played a role in slowing down the growth because the number of tourists who visited Las Vegas for gambling faced a division. The trend of tourists visiting other locations for gaming and gambling is expected to increase in the coming years based on the preferences and feasibility of the visitors. Thus, the three big names in casino industry are bidding for building casinos in various other states as well.
In 2014, Wynn won a bid for building casino resort outside Boston. The company is said to build a huge casino which will be open for public some time in 2017. The Massachusetts Gaming Commission selected Wynn because of their better paying jobs and their plan of cleaning up former industrial area at development site. The commission has also previously issued licenses for a Penn National Gaming slot near Rhode Island’s border and a casino by MGM in Springfield.