Wynn Resorts has announced an expansion plan worth $2 billion for its properties in Macau. The expansion would see non-gambling amenities and entertainment facilities added to Wynn’s properties.
While the gambling hub, is still recovering from the slowdown in the Chinese Economy which choked gaming and casino revenues over the past year, Wynn’s CEO Matthew Maddox is confident with his massive non-gambling expansion plans.
As a part of the expansion two hotel towers, interactive sculptures, gardens and performance space in a glass and steel structure designed by architect Robert A.M. Stern would be developed in a Crystal Pavilion complex which is adjacent to the Wynn Palace on the Cotai peninsula. Wynn Resorts is expecting a 20 percent return on the non-gambling investment.
The announcement is also being seen as a move to stay aligned with the modified Chinese policy which mandates gambling establishments also to develop non-gambling infrastructure as China wants to develop Macau as a family holiday destination as well.
It has been reported that the operators who would fail to comply with the new directives would not get their licenses renewed – which are due to expire in 2022.
For most operators, the investment in non-gaming facilities is a financial burden as the returns on such investments are comparatively very low. Studies estimate that casino operators have already spent over $10 billion to boost non-gaming offerings.