Wynn Resorts remains our top story today. It missed fourth-quarter cash-flow projections by 4%, partly due to mediocre high-end play in Macao, although the mass-market trade was better (up 4% but lagging the Macanese industry’s 8% gain). Wynn Palace underperformed and Wynn Macau outperformed. A 10% EBITDA downturn in 
Las Vegas was blamed on “soft Asian high end play,” so it’s going around everywhere. Encore Boston Harbor, though, was “a bit better than projected,” according to JP Morgan analyst Joseph Greff. Coronavirus put a damper on what began as a strong 2020 in Macao. While Greff characterizes the epidemic’s impact as “temporary and transient,” we’re talking real money here: Wynn will burn through $2.5 million for each day that its Macanese casinos are closed. “While not a ton of details were given on Far East/China player visitation to Las Vegas, it doesn’t sound great, though it’s not nearly as bad as Macau,” Greff wrote.
The analyst shaved his estimates of Macao cash flow by a hair or two: 70% in 1Q20 and 55% in 2Q, with normality returning in the fourth quarter, aided by an easy comparison (Hong Kong protests and a visit from 
President Xi Jinping having driven away business, with VIP gross gaming revenue falling 39%). Pessimism about baccarat caused 2020 Wynncore cash-flow projections to be ratcheted down to $439 million, improving to $493 million next year. Bad debt write-offs, however, ballooned to $4 million. Table-game revenue was $72 million on 18.5% less wagering. Slots were a bright spot, up 6.5% to $63 million on $943 million gambled. Room revenues gained 2% on 89.5% occupancy and $322/night rates, compared to 88.5% and $315 in 4Q18. (Room renovations at Wynncore are slated for late 2020.)
Net revenue at Wynncore was $367 million (-6%), that at Encore Boston Harbor $169 million, Wynn Macau netted $525.5 million (-5%) and Wynn 
Palace $590 million (-20%). Greff reported that Wynn “continues to make tweaks to Encore Boston Harbor, including increasing the number of table games/removing some slots, and looks to add more fast/casual dining options for its weekday customers.” In Macao we’re still almost two years from the commencement of Crystal Palace but it’s budgeted at $2 billion, upon which Wynn expects an ROI of as much as 20% (impressive). No word on Japan, although we take that to mean business as usual.
* This isn’t a good week for Excalibur. A sexual assault has been reported by Las Vegas Metro (the suspect is still at large). The same day, first responders arrived at the hotel to deal with a fire. At least that was extinguished quickly. Needless to say, tourists were inconvenienced. “There’s just a whole number of guests sitting in the hallway waiting to get into their rooms and get their stuff and hopefully catch their flight or bus out of town,” said one visitor.
* DraftKings, in a move comparable to having the tallest building in Mogadishu, has been announced as the official daily fantasy sports partner and the authorized gaming partner of the XFL. It takes some confidence by DraftKings to strap this millstone around its neck. Even with Fox Sports in its corner, the no-name XFL is an extreme long shot to last past this season. Let’s face it, folks, the sports audience is focused now on basketball and hockey. Besides, the XFL product was tested two decades ago, to passionate public apathy. Good luck to DraftKings as it rides this train to nowhere.
* Can’t gamble in Macao because of coronavirus? Maybe try South Korea? No such luck … at least as concerns Paradise Co. and Grand Korea Leisure casinos, which are barring tour groups from China. Individual VIPs are still welcome, however, and some Korean casinos remain open to Chinese patrons, although Jeju Island‘s government is considering putting its visa-free policy toward Chinese casino patrons temporarily on ice.
