CASINO

Macau boosted again; Wynn want Okada case thrown out; Legal squabbling could have ramifications

TAGs: Japan, Kazuo Okada, Macau, Wynn Resorts

wynn macau court caseMacau received its latest boost from Wells Fargo analysts who, according to Lusa News Agency, project gross gaming industry revenue to hit MOP23.4billion. It would mean a rise of around 25% compared with last year and reflects earlier predictions that the timing of Chinese New Year would be huge for the enclave’s casino business. Cameron McKnight, analyst at Wells Fargo, did add that February’s revenues could decrease by around 14% year-on-year thanks to the timing of Chinese New Year. It still means there’s been a rise in visitors and shows Macau is still on its way up.

Wynn Resorts have called for a Nevada court to dismiss a request by their largest shareholder to view certain financial documents. The casino firm called Kazuo Okada’s grievances “innuendo, hyperbole, half-truths and sweeping generalizations,” according to a filing seen by the Wall Street Journal. The firm also stated that the requests were “nothing more than stockholder inspection requests, on behalf of Aruze.”

Aruze USA, part of a company that Okada owns, responded to the claims, stating: “The response of Wynn Resorts’ management, while full of colorful rhetoric, cannot explain this away. We look forward to presenting our position to the Court,” alluding to the fact Okada cannot complete his directorial responsibilities.

The case could have far reaching consequences if one analyst is to be believed with Japanese expansion plans at Wynn under threat.

“The negative relationship dynamics that have developed seem serious enough to where it may put the company’s future in Japan in jeopardy,” said Jonathan Galaviz, managing director and chief economist at research firm Galaviz & Company.

“My guess is that this negative relationship issue with Wynn Resorts will probably press Okada to develop a relationship with another U.S. casino gaming company. Certainly Las Vegas Sands has been very aggressive in their desire to do something in Japan,” said Galaviz, adding that he expected many large corporates to be reaching out to Okada’s organization.

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