Wynn Resorts delays $375 million Las Vegas projects amid tariff uncertainty

Wynn Resorts is postponing $375 million in capital expenditure projects at its Las Vegas property, including a remodel of the Encore Tower, citing uncertainty surrounding U.S. tariffs, company executives said Tuesday.

“The current tariff rates have driven us to delay about $375 million of cap-ex projects, including the Encore Tower remodel,” Chief Executive Officer Craig Billings said during the company’s first-quarter earnings call. “Once tariff rates have settled, we will thoroughly re-spec and re-source the most severely affected items.”

The delay also affects enhancements such as the Zero Bond club, the Golf Course Club House & Grill, and an expansion of the high-limit table games area.

Billings said operational costs tied to tariffs remain “low and entirely manageable,” mostly impacting food and beverage, with the company actively seeking alternative sourcing. However, the impact on capital items—particularly furniture, fixtures, and equipment—has proven more disruptive.

“Figuring out the revised timing is not trivial because when we re-spec pieces, particularly furniture and fixtures, it’s not like we’re flipping through a catalog,” he said.

Operating revenue from Las Vegas declined $11.3 million year-over-year in the first quarter to $625.3 million, due largely to the absence of the Super Bowl boost seen in 2024. Company-wide, revenues totaled $1.7 billion, down from $1.84 billion a year earlier.

“Our slot business continues to be a bright spot as the investments we have made in our premium slot areas and in the team have helped maintain our premium positioning,” Billings said, noting year-over-year growth in drop, handle, revenue per available room, non-gaming revenue, and cash flow.

Chief Financial Officer Julie Cameron-Doe said: “The renovations are not being eliminated, but rescheduling them in this economic environment won’t be easy.”

International travel, which once made up about 9% of the Las Vegas market, has yet to fully rebound since the pandemic, but Billings said domestic demand has remained resilient. “Wynn has had no problem finding other customers to take their place,” he said.

Outside the U.S., the company reported strong performance at its Macau properties, particularly during the Golden Week holiday. A new Gourmet Pavilion at Wynn Palace generated 2,400 additional daily restaurant covers.

At its Al Marjan Island project in the United Arab Emirates, construction has reached the 47th floor. Wynn said the resort remains on track to open in early 2027, positioning itself in what analysts expect to be a $5 billion-plus gross gaming market.

Wynn is also evaluating opportunities in Thailand, New York, and potentially Japan, though Billings noted regulatory concerns remain in the latter.

“We’ll always look at any gateway city where meaningful capital can be deployed and we think the Wynn brand resonates,” Billings said. “So Japan fits that bill… But it’s got to be right, and the setup has to be right for us.”