Wynn Casino Everett News
In January 2018, when news of Steve Wynn’s sexual escapades hit the news in a Wall Street Journal investigative report, many believed it would be the end of the casino. Tuesday, Wynn Resorts stock went up with the market in general on the news that a bailout is coming, and soon. The stock price jumped beyond $60, to about $65.00. Correspondingly, its market share value went up to $7.12 billion. EVERETT - Las Vegas gambling mogul Steve Wynn returned to Massachusetts on Wednesday to visit a new potential site for a casino. EVERETT (CBS) – Wynn Resorts and MGM Resorts International are having discussions about the possible sale of Everett’s Encore Boston Harbor casino, set to open next month. Both companies confirmed the news, first reported by The Boston Globe, in a joint statement to WBZ-TV on Friday.
Burning through precious cash
By Josh Resnek
If you follow the stock market, and if you pay attention to your retirement accounts or 401k’s – if you have them – then you know how badly everything has fared since the shutdown of the American economy.
In a world where cash is king and being broke is about as bad as a situation can be nowhere is this more evident than with the financial situation over at Encore Boston Harbor.
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Mind you, Encore/Wynn Resorts is not going out of business even though they are presently out of business in Macau, Las Vegas and in Everett.
All the doors are locked. All the employees are being paid.
Nothing is coming in.
In addition, because nothing is coming in and Encore needs to pay its bills, executives at the company have been drawing down millions of dollars from its $850 million line of credit.
About 30 days ago, the company’s market cap value, that is, the value of all its common stock outstanding was about $14 billion.
Last week, it sank to about $4 billion – the price of the stock declining from a recent high of $130 to about $45 a share.
As the price for the stock fell, the dividend remained the same, increasing the percentage value of the interest paid vis a vis the value of the stock.
As the stock goes down, the interest value goes up.
Last week it was almost at 8%.
Tuesday, Wynn Resorts stock went up with the market in general on the news that a bailout is coming, and soon.
The stock price jumped beyond $60, to about $65.00. Correspondingly, its market share value went up to $7.12 billion. These incredible and unpredictable wild swings in price and market share evoke the kind of volatile moment we are experiencing with the US economy shut down.
Can Wynn Resorts survive with it doors closed?
No it can’t.
Can it pay its 5,000 employees here another round of salary for a month after its first 30 day effort is done?
Unlikely.
What happens when Encore reopens in Everett finally?
They are back in business. They prosper, and they survive.
However it is likely when the reopening comes, the crowds will not be banging down the doors.
Whatever happens following the virus is gradual, until normalcy returns – if it returns.
If it doesn’t, the casino and hotel here faces the same difficulties as everyone now out of business.
Rebuilding the business after reopening will take time, energy and cash.
As long as Wynn Resorts maintains a cash position, it survives nicely. When its cash buffer is gone, Wynn Resorts will likely be gone with it. What then will Everett do?
That is a very good question as Encore pays Everett $30 million a year in lieu of taxes.
Wynn Resorts, which hopes to build a $1.7bn resort casino in Everett in the US state of Massachusetts, has delayed a groundbreaking ceremony, cancelled planned job fairs and frozen all project-related recruitment.
The company said the move is in response to Somerville city mayor Joseph Curtatone’s intervention in the award of an environmental permit for waterside construction projects.
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Curtatone, a committed opponent of the casino project, submitted the appeal earlier this month.
Wynn Everett President Robert DeSalvio said at a press conference that, due to Curtatone’s appeal, “the construction of the Wynn resort is effectively on hold.
“We are not going anywhere,” he added. “We will get this project started as soon as possible. We will get this amazing project done.
“But for now, unfortunately, due to the delay that’s caused by the appeal, we are actually going to have to go on hold.”
In a subsequent press conference at Somerville City Hall, Curtatone blamed Wynn for the delays.
“The appeals are a necessary to make sure we get it right,” the mayor said.
“They knew the appeal was coming, and their claim that everything from this point on is the responsibility of the city of Somerville is really based on Wynn’s fantasy timeline where they are above the rules and regulations of this Commonwealth, and that they’re not subject to the normal appeals process.
Wynn Everett Casino News
“As soon as Wynn is willing to step up to the plate to develop a responsible traffic plan and address our environmental concerns, then this project has a possibility of moving forward,” said Curtatone.