How Robert De Niro Called the Malaise Facing Wynn Resorts

In the iconic Martin Scorsese film Casino, sports handicapper and Mafia associate Sam “Ace” Rothstein – played by Academy Award winner Robert De Niro – bemoaned that Las Vegas would “never be the same.” He links its modern imagery to that of a famous theme park. Rather than facilitating a pure avenue for games of chance, Sin City went corporate, becoming a vacation spot for pensioners and families with small children.

Prior to the COVID-19 pandemic, gambling mecca Wynn Resorts (WYNN) was riding high on its Macau-based properties, where patrons take their wagers very seriously. However, the global health crisis has now forced Wynn to rely more on its Las Vegas operations, which is a troubling recipe. I am neutral on WYNN stock.

Though the film came out in 1995, De Niro’s voiceover in the final scenes perfectly encapsulates the woes impacting WYNN stock. Before the COVID-19 pandemic, the gaming resort relied heavily on its Macau properties to deliver the goods. In the first quarter of 2021, Wynn posted revenue of $1.65 billion, with its Macau resorts accounting for nearly 76% of sales.

Fast forward three years later, in Q1 2022, and Macau properties only account for 31% of Wynn’s $953.3 million in revenue. With Vegas now the key revenue generator (at 46% of total sales), WYNN stock is dependent on the U.S. market to keep the lights on.

Unfortunately, this is where De Niro’s parting words in Casino really hurt.

Source: https://www.tipranks.com/news/article/how-robert-de-niro-called-malaise-of-wynn-resorts-wynn-stock/