Some Investors See Bright Future for Wynn Resorts Despite Investor Dissent

While Wynn Resorts remains beset by investor anxiety, not everyone is sounding the alarm. While shareholders such as Tilman Fertitta have raised serious concerns about the company’s future direction, some voices in the credit market remain optimistic about Wynn’s long-term prospects, especially those tied to its ambitious expansion in the Middle East.

Strategic Investments Hold Substantial Promise

According to a recent Casino.org report, Kim Noland, director of high-yield research at GimmeCredit, gave a positive assessment of Wynn’s debt maturing in 2031. She drew substantial attention to Wynn’s planned resort on Al Marjan Island in the United Arab Emirates, scheduled to open in 2027, calling it a potential game-changer for the company.

Noland confidently gave Wynn’s 7.125% 2031 bonds an “outperform” rating, noting that the operator’s Middle East initiative could make it a pioneer in a gaming market rivaling the Las Vegas Strip. Wynn has already spent about $700 million on the Al Marjan Island project and intends to invest a further $700–$775 million over the next year. The planned resort would be the first regulated casino resort in the Middle East, marking an enormous strategic victory for Wynn. 

Noland was also optimistic regarding the company’s prospects in Macau, which has traditionally been its best-performing market. May gross gaming revenue reached a post-pandemic high, helped by holiday travel and family events, giving hope for continued growth. Wynn is investing $750 million in non-gaming improvements for its Macau properties, aligning with the region’s diversification efforts.

Compliance Missteps Invited Investor Discontent

Despite Noland’s optimism, Wynn’s management has recently faced rising criticisms. Fertitta, who holds a 12.3% stake in the firm and is the current US ambassador to Ambassador to Italy and San Marino, has voiced increasing discontent regarding the company’s strategic and corporate governance. He was especially critical of Wynn’s compliance failures.

The operator recently paid $130 million to the federal government and $5.5 million to Nevada regulators due to substantial anti-money-laundering failings. Tillman argued such developments reflected poorly on the company’s image and signaled insufficient oversight. However, he was also hopeful regarding Wynn’s UAE ventures, believing they could bolster the operator’s global portfolio.

While Wynn must contend with mounting pressure from large shareholders and the aftermath of its compliance missteps, the company can still rely on its strategic investments to carry the day. If the company’s UAE gamble succeeds despite global political and economic instability, Wynn may still emerge as a dominant force in the international gambling scene.