Wynn Resorts Weathers Vegas Tourism Drop in Q2

While Las Vegas tourism faced a sharp downturn this summer, Wynn Resorts largely sidestepped the slowdown thanks to its focus on high-end clientele. The company’s second-quarter results suggest that its luxury positioning insulated it from broader market weakness, even as visitor numbers to the Strip fell significantly.

Travel to Las Vegas dropped 11% in June, according to the Las Vegas Convention and Visitors Authority, signaling a pullback from travelers amid economic uncertainty. Many Strip operators felt the impact. Wynn, however, maintained momentum in its Las Vegas operations, targeting customers less sensitive to economic swings. The company reported an average daily room rate of $548 during the quarter, up 3% from the same period last year — a key metric tied to occupancy-driven revenue at its properties.

Wynn Resorts CEO Craig Billings told investors the company saw healthy performance in table games, slots, and luxury dining during the quarter. “We remain positive about the business in Las Vegas,” Billings said during Thursday’s earnings call. “We sit in a unique position. We’re not the best barometer of Las Vegas at large.” He added that forward bookings in July strengthened as the month progressed, and group and convention demand remains strong heading into the fourth quarter. Wynn also expects a boost from the third annual Formula 1 Las Vegas Grand Prix this fall.

Las Vegas Strength Offsets Macau Softness

For the three months ended June 30, Wynn generated $638.6 million in operating revenues from its Las Vegas segment, up from $628.7 million a year earlier. The company reported increases in both drop and handle — key measures of casino betting activity — over the quarter. Adjusted property EBITDA rose slightly to $234.8 million from $230.3 million in the same period of 2024.

Despite these gains, overall profits for the company fell. Wynn posted net income of $66.2 million, or $0.64 per share, down from $111.9 million, or $0.91 per share, in Q2 2024. Adjusted earnings per share came in at $1.09, missing analyst expectations of $1.20.

The weaker bottom line was partly attributed to softness in Macau. Wynn’s Macau operations generated $343.8 million in revenue for the quarter, with performance weighed down by a low hold in the VIP segment. Billings noted that the lower-than-expected VIP win rate negatively impacted revenue by approximately $13 million.

Stock Performance and Strategic Developments

Wynn shares traded around $105 on Friday morning, down about 2% following the earnings release. Despite the dip, the stock remains up roughly 60% since April, when U.S. President Donald Trump announced new tariff measures, and has risen about 37% over the past 12 months.

The company also provided updates on key projects. Renovations on the Encore Tower in Las Vegas will begin next spring, with completion expected within a year. CFO Julie Mireille Cameron-Doe said the $330 million remodel will modernize the property’s luxury offerings.

Internationally, Wynn is advancing its Wynn Al Marjan Island project in the United Arab Emirates, slated for a 2027 opening. The development, which will be the first licensed casino in the UAE, continues “progressing rapidly” with construction currently at the 61st floor of its 1,000-foot tower, according to Billings. The company has drawn $395 million from its construction loan for the project to date. Wynn remains the only operator licensed by the UAE’s General Commercial Gaming Regulatory Authority.

Our focus on premium customers has helped Wynn navigate the challenges in Las Vegas this quarter, positioning us well for continued growth.

Future Optimism & Market Pressure

While Wynn’s Las Vegas business continues to perform strongly, the mixed results across segments highlight the challenges facing casino operators in a shifting global market. The company’s reliance on premium customers has so far shielded it from the broader tourism slowdown in Nevada, but performance in Macau and the pressures of meeting investor expectations remain critical factors for the rest of 2025.

Billings expressed confidence that the company’s strategy — bolstered by upcoming events, continued strength in group bookings, and international expansion — positions Wynn to sustain growth into the year’s final quarters. However, the stock market’s reaction to the Q2 results suggests investors are watching closely to see whether Wynn can balance its Las Vegas resilience with recovery in other regions.