Wynn slammed by Macau shutdown

Maddox sees some progress at Encore Boston Harbor

WYNN RESORTS CEO Matt Maddox said the coronavirus shutdown of all the casinos in Macau for at least two weeks is costing the gambling giant millions of dollars a day in lost revenue even as the company continues to burn through $2.4 million to $2.6 million a day in ongoing expenses for employees.

Casino business in Macau was already off dramatically with previous travel restrictions, and is now shut down completely. Maddox said 2020 had been shaping up as an extraordinary year, given the opening of high-speed rail into Macau and light rail service to the casinos. For Wynn’s resorts in Macau, Maddox said, those good times will have to wait until the virus scare subsides.

“It’s a little early to say exactly when we will reopen,” he told financial analysts in a conference call after the company’s release of its fourth quarter results.

Meet the Author

Bruce Mohl

Editor, CommonWealth

About Bruce Mohl

Bruce Mohl is the editor of CommonWealth magazine. Bruce came to CommonWealth from the Boston Globe, where he spent nearly 30 years in a wide variety of positions covering business and politics. He covered the Massachusetts State House and served as the Globe’s State House bureau chief in the late 1980s. He also reported for the Globe’s Spotlight Team, winning a Loeb award in 1992 for coverage of conflicts of interest in the state’s pension system. He served as the Globe’s political editor in 1994 and went on to cover consumer issues for the newspaper. At CommonWealth, Bruce helped launch the magazine’s website and has written about a wide range of issues with a special focus on politics, tax policy, energy, and gambling. Bruce is a graduate of Ohio Wesleyan University and the Fletcher School of Law and Diplomacy at Tufts University. He lives in Dorchester.

About Bruce Mohl

Bruce Mohl is the editor of CommonWealth magazine. Bruce came to CommonWealth from the Boston Globe, where he spent nearly 30 years in a wide variety of positions covering business and politics. He covered the Massachusetts State House and served as the Globe’s State House bureau chief in the late 1980s. He also reported for the Globe’s Spotlight Team, winning a Loeb award in 1992 for coverage of conflicts of interest in the state’s pension system. He served as the Globe’s political editor in 1994 and went on to cover consumer issues for the newspaper. At CommonWealth, Bruce helped launch the magazine’s website and has written about a wide range of issues with a special focus on politics, tax policy, energy, and gambling. Bruce is a graduate of Ohio Wesleyan University and the Fletcher School of Law and Diplomacy at Tufts University. He lives in Dorchester.

At Encore Boston Harbor, Maddox said the company is picking up some steam after a slow start. Earnings before interest, taxes, depreciation, and amortization doubled from $7.8 million in the third quarter of 2019 to $15.3 million in the fourth quarter. The operating loss declined from $41.6 million in the third quarter to $34 million in the fourth. Maddox said expenses at Encore were reduced 11 percent between the two quarters.

“Admittedly, it has opened softer than we thought, particularly on the slots side,” said Maddox. He said the company is adjusting to the Boston market, adding, for example, more quick-serve food options for daytime slots players.

“We feel good about the progress we’re making,” he said.