Wynn Resorts Faces Slight Decline in 2025

Las Vegas — Despite facing a difficult first quarter marked by revenue and earnings declines, Wynn Resorts expressed confidence in its long-term resilience and strategic positioning during its earnings call on Tuesday, signaling a cautious but measured approach to macroeconomic uncertainty.

The luxury casino and resort operator reported an 8.6% year-on-year drop in revenue to $1.7 billion for Q1 2025, alongside a sharp fall in net income, which halved to $72.7 million from $144.2 million the year prior. Diluted earnings per share dropped from $1.30 to $0.69.

Wynn cited several factors behind the downturn, including a tough year-over-year comparison due to last year’s Super Bowl-related surge in activity. Operating revenues were down across all major segments: Wynn Macau (-$81.8 million), Wynn Palace (-$51.0 million), Las Vegas operations (-$11.3 million), and Encore Boston Harbor (-$8.6 million).

Group adjusted property EBITDAR dropped 17.5% year-over-year to $532.9 million. Each of the company’s major properties saw corresponding EBITDAR declines, most significantly in Macau.

However, CEO Craig Billings pushed back on broader concerns over tariffs and consumer softness. “We expect the direct impact from tariffs on OpEx to be low and entirely manageable,” he said, citing food and beverage as the primary area of concern but noting that alternative sourcing strategies were already underway.

Billings acknowledged potential travel slowdowns but downplayed their effect on Wynn’s high-end clientele, stating that such trends “don’t really impact us much at all.”

CapEx Reassessment Signals Strategic Patience

While operating expenses remain manageable, Billings described the capital expenditure outlook as more complex. The company announced it is reassessing approximately $375 million in capital projects, including a large-scale renovation of the Encore tower in Las Vegas, which comprises the bulk of the paused investments.

Billings emphasized the projects were not canceled but delayed due to rapid macroeconomic changes, adding that the company would not commit to revised timelines until the environment stabilizes.

Despite the pause in capital spending, Wynn executed a $200 million share buyback during the quarter and declared a $0.25 per share dividend payable on May 30. The company reported $2.07 billion in cash on hand and $10.5 billion in debt as of March 31.

Wynn continues to invest in international growth, with progress reported on its 40%-owned Al Marjan Island project in the United Arab Emirates. The development has reached the 47th floor, with Wynn contributing $51.2 million in Q1, bringing its total investment to $682.9 million. The project remains on track for a 2027 opening, and Billings indicated tariffs would not significantly affect the timeline, as most materials had already been sourced.

Meanwhile, Wynn reaffirmed its bid for a coveted New York casino license at Hudson Yards, despite concerns about potential online gaming competition and a complex regulatory landscape. The project partners recently expanded their affordable housing commitment in an effort to address political opposition.

We continue to be in the running in New York, but we absolutely will not get over our skis to win a license there.

Outlook

The company remains cautious about further expansion in Asia. In Japan, where Wynn previously withdrew from the market, Billings noted ongoing “structural challenges” and said the company would only re-enter if conditions improved. In Thailand, legislative delays and concerns about proposed regulations—such as stringent wealth checks—have clouded the country’s once-promising gaming expansion.

Despite the Q1 setbacks, Wynn Resorts maintains a tone of operational stability and long-term strategic discipline. With substantial liquidity, ongoing global development, and an ultra-premium brand position, the company is betting that it can ride out short-term volatility without sacrificing future growth.