Steve Wynn saved the struggling Atlantic City by himself in the 1980s. He opened the Golden Nugget, which was considered the most decorated hotel casino on the boardwalk at the time.
On Tuesday, Winn saved the game in Philadelphia. He reinvigorated the failed development, taking control of a sinking casino project south of the city near the Delaware River and Walt Whitman Bridge.
The move also drove a final stake through the heart of Atlantic City. 슬롯머신
Wynn Resorts, Inc. will be the general partner of a casino originally led by an Indian tribe that runs Connecticut’s Foxwood casino. The tribe was unable to raise $670 million in costs.
Pennsylvania gaming regulators were prepared to limit the project’s gaming licenses until Philadelphia Entertainment and Development Partners brought in Wynn.
Most analysts believe Wynn will provide capital to launch casino ventures through his banking relationship and financial sector.
“Win will definitely fund this deal on a capable balance sheet,” Goldman Sachs gaming analyst Stephen Kent said.
Wynn gave few details in the announcement. Two days later, he said the casino will have 3,000 slots and a table game and it will be a “Wynn signature presentation” without a hotel.
Wynn has been looking for a casino on the East Coast for the past year. Pennsylvania has become more plausible since state lawmakers approved adding table games to its slot machine-only casinos.
Images of a full-fledged Wynn-run casino in Philadelphia sent the Atlantic city a chillier than ever.
Philadelphia and its 1.5 million residents are just 62 miles from Atlantic City, providing one of the main supply markets.
Philadelphia’s second casino, the $310 million Sugar House, began construction in October and is expected to open this year with a 100,000 square foot casino.
JPMorgan gaming analyst Joe Greff sought to take a diplomatic stand in his assessment of Atlantic City’s future in a research note after Wynn Resorts announced the deal.
“The Wynn-branded casino in Philadelphia will continue to put pressure on the Atlantic City market and will probably put a lot of pressure on the market’s luxury, or Borgata,” Greff said.
He also doesn’t think Wynn’s Philadelphia project bodes well for the owners of a 50-50 joint venture between Boyd Gaming and MGM Mirage. All of Boyd’s stock value per share is for Boyd. MGM Mirage wants to sell its stake in the casino and may see its asking price come down if the Philadelphia gaming market boom.