Casino giant Wynn Resorts hit by Macau slowdown
Profit at the casino and hotel operator Wynn Resorts has fallen after a sharp slowdown at its Macau operations.
Wynn said its net income for the three months to September was $73.8m (£47.6m), compared with $191.4m a year earlier.
Its Macau operations saw a 37.9% decrease in net revenue in the quarter.
A crackdown on luxury spending by the Chinese government has hit the Macau region, the world’s largest gaming centre.
The special administrative region of China has traditionally been favoured by mainland Chinese big spenders for shopping and gambling.
Nevada-based Wynn owns 72.2% of Wynn Macau, which operates a casino hotel resort there. The firm is expected to open another property in Macau next year.
Its shares fell in after-hours US trading.
The head of Wynn Resorts, Steve Wynn, told reporters on a conference call: “In my 45 years of experience, I’ve never seen anything like this before.”
“The decline was the result of a 37.9% net revenue decrease from our Macau operations and a 3.9% net revenue decrease from our Las Vegas Operations,” the firm said in a statement.
Wynn’s Macau business also saw a 51.3% fall in its VIP table games turnover, from $12.2bn for the period compared with $25.1bn a year earlier.
China’s Communist Party prohibits officials from gambling, but until the 2012 launch of President Xi Jinping’s huge crackdown on corruption and luxury spending, officials had reportedly visited Macau’s casinos to gamble and spend.
China’s mainland government has since gone after thousands of public officials and individuals in the private sector.
Earlier this year, a luxury goods fair was cancelled in Macau because of China’s crackdown on corruption.
China is also facing a slowdown in economic growth. After decades of double digit growth, the government has said it expects to see 7% gross domestic product for this year.