Steve Wynn might want to think twice about buying back into Wynn Resorts. Stock analyst Frank Fantini thinks the company’s Macao holdings might be made an example in the U.S./China trade war. Fantini believes Beijing could target “companies that are not strategically important, and that could be Macau casino 
operators. After all, they are raking in billions of dollars from Chinese citizens in businesses that depend on government licenses.” Plus, half of the gaming concessions in Macao are held by running-dog capitalists from the Great Satan. “Further incentive could come from the pressure by some to open Macau to more Chinese operators,” Fantini continues, adding that Macanese Secretary for Economy & Finance Lionel Leong suggested the government “should reconsider” rebidding the six concessions. And when a suggestion is made in China, it almost has the force of an order. As Muhammad Cohen puts it, “seating arrangements and cryptic quotes from second rank officials at third rank functions become critical policy rubrics.”
“It is difficult to handicap without personal knowledge, but Wynn could be the most vulnerable given that its legendary founder is gone and there has been speculation that the company might be sold. If so, that could present the opportunity to find a Chinese buyer for the Macau properties, thus killing 
two birds with one stone from the Chinese government viewpoint,” Fantini writes. Why is Wynn at such peril, compared to the obstreperous Sheldon Adelson? “If the government cracks down on VIP play as it did several years ago, Wynn again is most vulnerable, as VIP is its biggest segment. Las Vegas Sands would be least affected as the mass market—the rising and enormous Chinese middle class—is its market”
By contrast, MGM Resorts International is seen as having the least risk from a political standpoint: “There is no pugnaciousness about MGM. It keeps a low profile. It doesn’t hurt that local political power Pansy Ho is the second largest shareholder after MGM in MGM China.” And with Macao only representing 15% of MGM’s highly diversified revenue stream, it would be hurt least by Chinese retaliation. That’s certainly food for thought as concession renewal time draws nearer.
* Economic indicators for the Nevada locals-casino industry continue to trend positively. Las Vegas added 1,900 jobs in November, followed by Reno with 1,200. All 
17 counties experienced declines in unemployment, with eight beating the national average. Las Vegas is up 38,900 over the year (4%) and, more impressive still, Reno added 1,200 jobs over the month and 13,300 over the year (6%). Unemployment is at 4.5% in Vegas and 3% in Reno. Employment in both metro areas outpaces the Silver State as a whole. Up north, this has to be good news for Meruelo Group and makes us wonder if Station Casinos is failing to strike while the iron is hot by not developing its two Reno parcels. In the south, Station, Boyd Gaming and Golden Entertainment are all poised to capitalize on such positive numbers. We wish them a happy New Year … speaking of which, the Las Vegas Strip anticipates 318,000 New Year’s Eve revelers (an impressive gain from last year’s 309,000) and 97% of hotel rooms have already been booked, putting the resort industry in the driver’s seat.
