My guys in Macau are indicating that the teflon surrounding the casino may be getting a bit sticky. I think pressure is finally on Wynn Macau to raise commissions. The property appears to be losing VIP market due to very high junket commission rates offered by Galaxy, Grand Lisboa, and MGM. The mass market side of the business is not offering any relief. Foot traffic is noticeably and consistently lower the last few weeks, probably resulting from the fully ramped ferry service offered by Venetian Macau. Remember that Venetian Macau resides on the Cotai Strip which is surely pulling visitation away from the peninsula and Wynn Macau. In fact, Wynn Macau recently converted at least 20 high margin mass market tables to lower margin VIP tables. This could certainly be indicative of slower mass market visitation.
Wynn Macau is clearly best run and most successful casino in Macau. That won’t change. However, expectations for the property and for the stock remain very high. The fall from the top is much farther as John Gotti found out.