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China – Wynn Palace GGR could surpass US$4bn by 2020

By - 26 May 2017

Revenues at Wynn Palace, Wynn Resorts latest Macau casino on Cotai, could reach US$4bn a year by 2020, according to Forbes.

In its first two full quarters of operations, Wynn Palace generated almost US$500m in GGR and US$100m in EBITDA per quarter.

Wynn Palace cost $4.4bn to build and has a capacity of 500 tables, 1100 slots, and about 1700 hotel rooms. Additionally, it has a $100 million fountain show and paintings that add to its appeal.
Forbes said: “We estimate that Wynn Palace could generate in excess of $4bn in revenues and $700m in EBITDA annually by 2020, accounting for about half of Wynn’s Macau business. Mass market gambling has been growing in the region after 2015, when the VIP gambling market suffered due to the Chinese government’s anti-corruption actions. Although we expect mass market gambling to grow, we also believe that VIP gambling will rebound and aid Wynn Palace’s growth.

“We expect the growth at Wynn Palace to be even higher in the coming quarters as the Macau gaming industry has started to accelerate its growth in the last few months and reached 14 per cent in April. Mass Market gambling has grown in double digits for the last few quarters due to the rise of premium-mass gamblers in the region, and we also expect a rebound in VIP gaming in the near term. We expect these to be the growth drivers of Wynn Palace in the coming years.”

In Wynn Palace, there are currently 60 VIP tables and, due to the rise in VIP gaming in Macau, Forbes expects the number of VIP tables to grow to 100 in the short term.

Forbes explained: “Assuming $400k average turnover from each table, Wynn Palace’s total VIP turnover could be as high as $4bn. We expect that by 2020, the number of VIP tables at Wynn Palace will be 120 as it will get an additional 50 tables by 2019, and average turnover per table will be $430k. Current VIP wins as a percentage of VIP turnover at Wynn Palace is about 2.8 per cent, which we expect to increase marginally to three per cent by 2020. In mass market gaming, average table drop has been around $20,000 per table, and we expect the average number of mass market tables at Wynn Palace to be close to 250. Thus, Wynn Palace’s mass market table drop could also exceed $4 billion by 2020. Similarly, with nearly 1100 slot machines and 1700 hotel rooms, Wynn Palace’s other revenues are likely to reach around $2bn by 2020.”

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