for early access to the latest igaming videos!
and get the latest igaming news first!
The share prices of Wynn Resorts Ltd have hit the 52-week low level due to investors’ concerns about the softening trends in Macau’s gaming industry and rising geopolitical tensions in the Middle East, according to JP Morgan Securities LLC.
The company said that the share prices of Wynn Resorts Ltd fell by 14 percent during the last month against only a 2 percent fall in the S & P 500 index during the same period.
JP Morgan attributed the poor stock performance to the concerns relating to Wynn Resorts’ risk associated with Macau and the United Arab Emirates, UAE. The company is in control of Wynn Macau Ltd, which owns Wynn Macau located in the peninsula and Wynn Palace located in Cotai, Macau.
The firm also has a substantial casino resort development underway in Ras Al Khaimah. The Wynn Al Marjan Island project is expected to open its doors in September 2027 for a cost of US$5.7 billion.
Macau Demand Remains Soft
According to JP Morgan, gross gaming revenue or GGR of Macau casinos was lower than anticipated after the FIFA World Cup 2026.
The sporting event was staged from June 11 through July 19. The investment analysts have already predicted the event to act as one of the causes that led to a shift in high-net-worth customers from Macau’s gaming in June and July.
There were initial signs that Macau gaming demand improved after the tournament ended. Citi estimated Macau’s average daily GGR for the first 9 days of August at MOP733 million, or US$90.7 million. This was about 12% higher than the daily rate recorded in July.
Seaport Research Partners also said in August that revenue recovery was evident in Macau following the World Cup-related slowdown. However, JP Morgan said the demand rebound did not last as long as initially expected.
GGR for Macau rose by 8.1% month on month in August to MOP21.89 billion. But GGR fell by 1.2% compared with the level seen in August of last year.
According to JP Morgan, the reason behind such an improvement was poor results in July, and not August’s performance.
September Figures Show Seasonal Slowdown
The softer market trend appears to have continued into September.
UBS estimated Macau’s average daily GGR for the first 6 days of September at MOP633 million. The figure was around 11.5% below August’s daily average, although it was about 4% higher year-on-year.
The figures indicate that Macau gaming activity remained seasonally soft during the first part of September. JP Morgan said the market’s post-World Cup rebound now appears to have been short-lived.
The performance of Macau remains relevant for Wynn Resorts because of its casino operations at Wynn Macau and Wynn Palace. Continued softness in the market has added to investor concerns surrounding the company’s earnings outlook.
Wynn Palace Projects Continue
Despite the Macau market concerns, Wynn Resorts is continuing planned development work at Wynn Palace.
Management said last month that construction of a previously announced event centre and theatre at the Cotai property would begin in the coming weeks. The project followed Macau government approval in July for revised land-use terms connected to the Wynn Palace expansion.
The group also expects to begin construction of the US$950 million Enclave at Wynn Palace hotel tower before the end of this year. The development will include 432 suites.
These projects are part of Wynn Resorts’ continuing investment in its Macau operations, while the company also develops its UAE casino resort.
UAE Project Adds Uncertainty
JP Morgan said Wynn Resorts was trading at 9.7 times estimated 2027 enterprise value to EBITDA. This was broadly in line with the group’s 3-year average of 9.8 times.
The brokerage said the valuation appeared to assign little or no equity value to Wynn Al Marjan Island.
Wynn Resorts is developing the US$5.7 billion project with local partners Marjan LLC and RAK Hospitality Holding LLC. The company holds a 40% equity interest in the UAE development.
JP Morgan said rising tensions in the Middle East have added to investor concerns, even though day-to-day conditions in Dubai have largely returned to normal.
Source: GGR Asia
