Wynn Resorts is well positioned to take advantage of the China/Macau growth in gaming. Demand is expected to grow over 10% per annum. Supply will grow between 3-5%. This is classical economic supply and demand theory at its most fundamental.
Wynn is one of the few gambling operators who have a license in Macau. Scarcity drives economic value.
Wynn’s focus on the high end allows it the highest leverage as their customers become more prosperous. The budget conscious gambler will not deliver the same return as the high stakes players.
George Gutowski writes from a caveat emptor perspective.