The company is on the cusp of opening a brand new $4.2 billion casino in the tiny but affluent territory of Macau, which is known as the world’s largest gambling destination. The peninsula in southeast China is a favorite travel spot for Asian gamblers, many of whom live in nations where gambling is illegal.
For unknown reasons, Wynn was granted only 50% of the table gaming permits it had requested for the project, just 100 permits rather than 200.
The Wynn Macau is slated to open on August 22, and unless it can somehow secure more gaming permits, its revenue-generating abilities will be considerably hamstrung.
Macau has seen monthly casino revenue fall for over two years in a row (25 months straight), so this news is certainly not welcome for the region. Analysts expect even lower revenue in coming months, as the Chinese government continues to fight against widespread corruption.
WYNN shares fell $7.31 (-6.98%) to $97.35 in premarket trading Friday. The stock had risen more than 51% prior to today’s pullback.