Wynn Resorts, Limited’s (WYNN) CEO Stephen Wynn on Q2 2016 Results
The hotel itself is the show
“In a hotel casino, in these integrated resorts, the hotel itself is the show. A lot of conversation has been promulgated about the diversification of gaming away from just gambling to non-gambling things, and that conversation has widely and largely been misunderstood. So let me make a point about that now.
When you say diversify to non-casino things, you have to understand that isn’t a simplistic thing – ‘well, we’ll have more restaurants; we’ll have more shows; we’ll have more this or that other than a slot machine or a baccarat table.’ Diversification means how well do you make the entire place an attraction from a hospitality and touristic point of view, so that you don’t just rely on a baccarat player or a slot machine player.
Now, that diversification involves the entire building. We spent, without exception and without any possibility of contradiction, more money on non-casino attractions in Wynn Palace than has ever been spent on any facility of that sort on the planet Earth. And it has been done in the things that really matter to people – the width of the hallways, the height of ceilings, the attractiveness, the decor, the size of the rooms, the elegance and luxury of the retail offerings and, most importantly, the entertainment quotient of each and every food and beverage outlet.”
Steven Wynn has a political rant
“The election in the United States, I think we’re all in the same position. It’s almost impossible to predict exactly what effect that will have. Without getting into an economics discussion, we have – sooner or later, our political establishment is going to be forced, regardless of party affiliation, to deal with $19 trillion in debt that’s climbing by around $1.6 billion a day. That means that, in the Treasury auction each month in downtown Washington, we’re printing money at the rate of $40 billion or $50 billion a month, which is, of course, increasing the money supply and directly impacting the living standard or the buying power of the US dollar or people who are being paid like everybody on this call today.
Now, part of the frustration in America is the fact that the deficit is having an enormous impact on the living style and the living standard of Americans, but not all of this is well understood by the folks, to use Bill O’Reilly’s term. The folks are being – their living standard being clipped by the deficit and by the printing of money and the increase in the money supply.
How long can this go on? In the history of the Western world, inflating your way out of this kind of a problem, taken to its extreme, to use the Weimar Republic as an example, people went grocery shopping with wheelbarrows full of currency. Now, before the recession, the euro was $0.87, $0.85 on the dollar. During Quantitative Easing 1, 2 and 3, it went up to $1.48. That was a devaluation of the American currency by 20%. Now, it’s $1.10. And to use that as a benchmark for a moment, it isn’t that the dollar got stronger, it’s that the euro got weaker because they started quantitative easing and printing money in the euro community.
So this deficit issue impacts the mental health, the frustration, the positive sense of tomorrow that working people feel in America. It hasn’t got to do with rich folks. It’s got to do with government, fiscal and monetary policy. We have $14 trillion in public debt and $5 trillion in intergovernmental debt. The coupon on that $19-trillion-and-climbing is around 2.3%, and that’s with short-term interest rates at zero virtually. Now, the current Fed, the lady is going to keep interest rates where they are. That, of course, protects all of the credit card debt of $1 trillion that’s out there. And so, we don’t have mass panic on the credit card interest. But I know that the government is in a quandary as to what to do about this.
Now, the issue about what’s going to happen with the election isn’t so much an issue of Trump versus Clinton at the moment. It’s a question of whether the House and the Senate and the Executive branch can get together and make Americans feel safer and have a fiscal and monetary policy that isn’t self-destructive, which currently it is. Now, I know that, in this time of year, everybody is making all kinds of promises and declarations that they can do things or they will do things that, of course, they cannot without exacerbating the problems that are currently plaguing the country.”