Hospitality and casino company Wynn Resorts has posted a 40 percent year-on-year drop in net income. The drop in income has been attributed to the cost of opening the new Encore Boston Harbor Casino in Massachusetts and decreased VIP visits at its Macau casino.
Wynn posted total revenue of $1.66b in the three months ending June 30. The figures represented a 3.3 percent increase when compared with the revenue generated for the same period the previous year.
While Wynn Resorts’ casino in Macau, Wynn Macau, posted a 0.6 percent increase in revenue to $546.5m, its Boston harbor casino grossed $18.8m in revenue in its opening week starting June 23.
The VIP revenue at Wynn’s Macau casino suffered as its VIP turnover was down by nearly 35 percent. However, VIP win at Wynn Macau jumped 0.74 points to an above-average 3.3%.
Gaming revenue from Wynn Macau was reported $481.2m which was up 1.7% year-on-year.
Wynn Resorts’ Encore Boston Harbor casino has been embroiled in controversy soon after it started welcoming guests from June 23.
A lawsuit has been filed against the casino alleging cheating the gamblers of their winnings. However, the Massachusetts Gaming Commission has confirmed upon investigation that operations at the gambling facility are in line with the existing gambling regulations.