The hotel operator and Casino giant Wynn Resorts has seen a 37.9% decrease in Net revenue this quarter after a sudden slowdown at its Macau business in China. For the past few months, its Net income has been $73.8m compared to the previous annual figures of $191.4m.
Luxury Spending Costs with Wynn Resorts
The world’s largest gaming center, the Macau region, was hit by a clean-up on luxury spending by the Chinese government. In 2012 after the initiative of President Xi Jinping’s clean-up on opulent spending and corruption, officials had allegedly visited Macau’s casinos to gamble.
This region of China has always been preferred by mainland Chinese big spenders for gambling and shopping purposes, most of whom happen to be public officials. China’s mainland government has since gone after thousands of individuals in the private sector including the public officials. It is for this reason that Wynn has seen a decrease in Net revenue of late.
After years of double digit growth, it has been reported that China is also facing a slowdown in economic growth. Chinese government has said in a statement that they expect to see at least 7% gross domestic product for 2015.
Wynn shares fall in US trading
Wynn has seen its shares fall in hours at the US trading sector yielding shocking results. Steve Wynn, the head of Wynn Resorts told reporters that in his 45 years of experience, he has never witnessed anything like this before. This is the result of a 37.9% decrease in Net from their Macau business in China and a 3.9% Net revenue decrease from their Las Vegas business.
