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A friend of mine in the Vegas casino business (he's a boss at a Strip casino) told me that Steve Wynn is rumored to be planning a comeback. After all the bad publicity, can he seriously be considering it? I realize he has a hard-driving personality, but isn't he really old? If you were him, wouldn't you just want to lay low with your billions and not invite a lot more scrutiny?
First, Steve Wynn turned 77 a few weeks ago. So he isn't what we would call "really old." He might be slowing down in his dotage, but we doubt age would be a major factor in a decision to get back into the fray.
True, he's been running silent since being forced out in disgrace from Wynn Resorts last February. However, the Feb. 4 issue of Global Gaming Business News reported the “rumors” that your friend passed on to you: that Wynn (the man, not the company) was shopping for land along the Las Vegas Strip. This raises several questions.
Why? Steve Wynn isn't the sort of individual to slip quietly into retirement. If he ever did achieve his goal of building the world’s greatest hotel, we wouldn't be surprised if he blew it up and started over again, just to outdo himself. Also, we’re confident that he doesn’t want the world’s last memory of him to be his ignominious exit from the company that bears his name.
When? Steve Wynn’s severance agreement from Wynn Resorts contains a two-year non-compete clause, meaning he’ll have to stay on the sidelines until next February. Also, Nevada Gaming Commission Chairman Tony Alamo was quoted as saying that Nevada regulators, although finished investigating Wynn Resorts, weren’t done with Wynn himself, hinting at further sanctions to come. Whatever those turn out to be, they should be resolved by then.
Where? It's said in the casino industry that everything is for sale for the right price. This might be the exception that proves the rule. MGM Resorts International has unused land south of MGM Grand that was once slated for a “Project Z” during the Terrence Lanni administration, but we’re pretty sure the lion doesn’t want Steve Wynn camping out on its doorstep. Ditto Wynn Resorts, which has punted on developing the New Frontier/Plaza/Alon/Wynn West site for now, but is highly unlikely to sell it to its former CEO.
That doesn't leave Wynn out of options. If he’s willing to work with a small footprint, the old Wet ’n Wild acreage could probably be his. Also, an assemblage of parcels between MGM Grand and Planet Hollywood is controlled by Spectrum Group Management. This site isn't without its challenges — such as having a timeshare smack in the middle of it — but Spectrum might be willing to sell if Steve Wynn flashed some cash.
Also, though this would be really out of the box, Wynn could trade on his brand equity and attempt an off-Strip casino (after all, Richard Branson is doing it). Potential sites include that of the demolished Key Largo Casino near Silver Sevens, and the vast unused acreage that was envisioned for a complex of hotels northeast of Harmon Avenue and Koval Lane. To the west of the Strip, Station Casinos has several parcels — once destined for the $11 billion Viva metaresort — near Days Inn at Wild Wild West — that it might be happy to unload, particularly since they could negotiate from a position of strength.
How? Steve Wynn’s name, however tarnished, is still probably good with Wall Street. Failing that, he could reach out to his connections in the Far East, even if they dried up on James Packer (Alon) and left Resorts World Las Vegas hanging for a good long while.
There is, of course, the issue of his gaming license. There has been talk that state regulators might order Wynn to surrender it, which would would dash any comeback ambitions.
Here at QoD, we have a little difference of opinion on this subject.
One faction says that if Steve Wynn’s got the will to attempt a Strip comeback, it wouldn't bet against him.
Another cites Ralph Engelstad, owner of the Imperial Palace, whose passion for Adolf Hitler didn't cost him his license (though he was forced to discontinue parties on Hitler's birthday). So if that's any yardstick, Wynn could easily skate.
A third would be extremely surprised if Wynn is allowed to keep his credentials intact. Having to surrender his license would render this rumor moot -- unless, of course, Steve Wynn were simply keeping his fingers in the Las Vegas Strip real-estate pie.
Let's hear it, QoDers. Where do youse line up on this issue?