Wynn Wins

While bigger rivals Caesars Entertainment and MGM Resorts International were spinning less-than-stellar results, Wynn Resorts actually had something to crow about in 2Q25. For thing, it hit record levels of cash flow at Wynncore. True, the company came in under where Wall Street had forecast it. But The Street was duly impressed with what Wynn delivered.

Revenue was $1.7 billion for the quarter and cash flow was $565 million. Wynncore, however, well outperformed Wall Street’s forecasts, bringing in $638.5 million in revenue and cash flow of $235 million. David Katz of Jefferies Equity Research, for one, had predicted those numbers would be $625 million and $224 million. Slot revenue shot up 14.5% and table games saw 13.5% more handle, in a city that was flat for both metrics. Mind you, Wynncore is high-end-oriented, insulating itself from the middle-market woes experienced by MGM and Caesars. Still, its performance gives ammunition to those who insist that everything is fine in Sin City.

If VIP play was the salvation of Wynncore, it was the undoing of Wynn Palace and Wynn Macau overseas. Both significantly underachieved. The two casinos, respectively, brought in revenue of $539.5 million and $344 million. Sounds good … but Katz had forecast $558 million and $370 million for the two. Encore Boston Harbor also disappointed, netting $215.5 million vs. Katz’s $221.5 million. At least construction proceeds apace on Wynn Al-Marjan, the company’s Arabian pleasure palace, now finished through the 61st floor.

A couple of parting notes on Wynncore. It’s reported by Wall Street that management is choosing to stick with high room rates rather, sacrificing occupancy in favor of a price point. Also, Encore room renovations that tariff insanity had put on hold have been resumed, the requisite materials reportedly having been purchased. Oncoming disruptions are promised to be minimal.

Staying close to home for now, Golden Entertainment hewed to a familiar script: soggy on the Las Vegas Strip, stronger in the locals market. Revenue of $164 million and cash flow on the order of $38 million were exactly as most on Wall Street expected, even if Truist Securities analyst Barry Jonas was a tad disappointed. The weaknesses were mostly as expected—The Strat and poor table game hold in Laughlin. That being said, locals play was reported to be gaining in momentum and the tavern business (in which Golden must now contend with Station Casinos) was seeing a more rational promotional environment.

Tourism woes depressed the already-challenged occupancy of The Strat, which plunged 16% in June alone, -4% for the quarter. Jonas says that Golden management “aggressively managed costs in an overall challenging environment.” That doesn’t sound like it’s going to make for a quality visitor experience. On the brighter side, occupancy is looking up for August and Golden pins great hopes upon spillover from the Las Vegas Convention Center. Like the rest of the Strip, The Strat is banking on the promise of strong group business in the waning months of the year.

Off the Strip, Jonas says, management “also noted that it’s seeing the strong local trends continue into Q3 and expects this cohort to be the biggest beneficiary in 2026 from the No Tax on Tips legislation as well as additional tax deductions for seniors.” No word on how the two Arizona Charlie’s are doing but tavern underperformance ($26 million) was rationalized as a consequence of promo wars.

One analyst who was pleasantly surprised by Golden was Katz. He wrote, “The quarter was generally in line, with continued solid cash generation and share repurchases … In our view, the commentary on growth opportunities seems to be progressing more positively, the tax benefits to the Las Vegas economy coupled with the well-telegraphed soft summer period should be neutral for the shares.” That’s a remarkably patient view coming from a quarter (Wall Street) not generally renowned for taking the long view.

Tomorrow … we look at Penn Entertainment, as well as grosses from Ohio and Maryland. Stay tuned.