Gambling
Wynn's Next Wager
Matthew Miller,
Steve Wynn stepped outside his new $2.7 billion resort and gazed towards the hotel's marquee on the Las Vegas Strip. As he spoke into his walkie-talkie, a clock appeared on the high-definition screen, and quickly a crowd of thousands counted down from 30 in unison. When it reached zero, the gambling aficionados and curious onlookers--some of whom had waited in line for hours to catch a glimpse of the new hotel--erupted with cheers of glee. LAS VEGAS - A few minutes before midnight, billionaire casino mogulstepped outside his new $2.7 billion resort and gazed towards the hotel's marquee on the Las Vegas Strip. As he spoke into his walkie-talkie, a clock appeared on the high-definition screen, and quickly a crowd of thousands counted down from 30 in unison. When it reached zero, the gambling aficionados and curious onlookers--some of whom had waited in line for hours to catch a glimpse of the new hotel--erupted with cheers of glee. Wynn, who ranks No. 306 on Forbes' list of the World's Richest People , smiled, shook hands with a few friends, pumped a fist and walked back into the building. The most expensive hotel in the history of Las Vegas was open for business.
Kirk Kerkorian's MGM Grand for $6.4 billion in 2000. Soon after, he purchased the Desert Inn for $275 million, demolished the hotel and began work on the new property. He broke ground five years ago today. Much of what he had been constructing had been a closely guarded secret until this morning. The opening of Wynn Las Vegas marks the return of Wynn, 63, to Vegas after a five-year hiatus. He first reinvented Sin City in 1989 with the huge, family-friendly Mirage, and then again with the ultra-plush Bellagio in 1998. He sold his Mirage Resorts company to's MGM Grand for $6.4 billion in 2000. Soon after, he purchased the Desert Inn for $275 million, demolished the hotel and began work on the new property. He broke ground five years ago today. Much of what he had been constructing had been a closely guarded secret until this morning.
With the security gates removed, customers pushed their way to the main entrance of the 50-story giant resort, a curved bronze structure with Wynn's signature affixed to the top. On their way to the casino lobby, visitors passed a Ferrari and Maserati dealership. Once inside, most clamored to get to the resort's 1,960 slot machines and 140 tables, which are surrounded by high-end shops (Louis Vuitton, Dior, Graffs), restaurants (SW Steakhouse, Okada), nightclubs (Lure, La Bete) and numerous gardens.
Forbes followed Wynn and his entourage for the first 20 minutes of the opening. The mogul spent much of the time walking the floor of the casino and restaurants, having his picture taken, pausing at times to talk into his walkie-talkie. Customers and guests gawked as he walked by, clapping, snapping photos and trying to shake his hand.
By 12:30 A.M. the casino floor was packed with a mixture of people; some were wearing black-tie formal wear, others jeans and leather jackets. Many customers had trouble walking between tables and slots machines because of the crowd.
In general, the 111,000-square-foot casino floor looks very similar to the Bellagio, from the way the tables are laid out to the typeface used on the signs. Several people remarked the property was simply "the Bellagio on steriods."
Richard Branson, Donald Trump, Le Reve, which was created by former Cirque du Soleil collaborator Franco Dragone. The hotel also will showcase the puppet-based Broadway musical Avenue Q. The evening got started with a $7,500-per-couple black-tie charity gala that included food from many of the resort's restaurants. Attendees included billionaires No. 170 on the World's Richest People list , and who ranks No. 228 . The expensive ticket featured a preview of one of Wynn Las Vegas' shows, the water-based, which was created by former Cirque du Soleil collaborator. The hotel also will showcase the puppet-based Broadway musical
Outside the casino, Wynn has built a $130 million mountain decorated with trees and plants that are rumored to have been imported from around the world. Several of the hotel's restaurants and nightclubs look out onto the mountain, which blocks off the view of other Strip resorts and secludes visitors. Several waterfalls descend from the top of the mountain into a three-acre lake that is used as part of a nightly music-and-light show.
The 215-acre site includes a golf complex behind the hotel. Cost per round: $500.
Reaction to the resort was mixed. Vanessa French, a 25-year-old Las Vegas resident, said the array of green, purple and yellow flowers that greeted guests in the main lobby was a nice touch. "I love the colors, and the nightclubs and lounges look like they're a lot of fun," she said. French says she waited two hours to get into the hotel, and was nearly knocked down by the crush of people trying enter when security opened the gates at midnight. "It was worth it," she said.
Other visitors said the casino would never live up to the hype surrounding its opening. "There's not much more you can do with a casino to make it more impressive than what we've already seen," shrugged Julie Wiener, a 30-year-old Air Force pilot who was visiting Sin City with her mother and sister on vacation from San Francisco.
Wynn Resorts (nasdaq: news - The resort's price tag certainly failed to impress investors in the weeks leading up to this morning's opening.(nasdaq: WYNN people ) shares fell $1.66, or 2.9%, yesterday, and have dropped 29% from their all-time high of $76.45 on March 16. Wynn spent (in theory) $1 million on each of the 2,700 rooms at Wynn Las Vegas, almost double the cost of the 3,000 rooms at the $1.6 billion Bellagio.
Wynn, who moved to Las Vegas after graduating from the University of Pennsylvania, is the son of a bingo parlor operator. He got his start as a slots manager at the Frontier Hotel, and eventually bought the Golden Nugget in downtown Las Vegas before opening the $630 million Mirage in 1989. The Mirage was the Strip's first "megaresort," complete with faux volcano and lush interior gardens, and was largely financed by junk bonds issued by Michael Milken . At the time, Vegas' old guard suggested Wynn was crazy for opening a hotel that needed to generate $1 million per day in revenue to pay off the debt. Wynn, who had seven years to service the bonds, paid off his debt in 18 months. Wynn soon opened the Treasure Island casino next door, and in 1998 opened the Bellagio, today the Strip's most-profitable casino.
Howard Hughes. At the time, he said it was a birthday present for his wife, Elaine Wynn. A private party will be held tonight to celebrate Mrs. Wynn's birthday with a special meal, featuring foods prepared by some of the celebrity chefs who have restaurants at the resort. During the late 1990s, Wynn stretched his then-company, Mirage Resorts, thin by expanding too quickly into Atlantic City and Mississippi. He eventually sold the company and all of the hotel properties he had developed to Kerkorian, who ranks No. 41 on the World's Richest list . Wynn used the proceeds to purchase the Desert Inn, which was once owned by. At the time, he said it was a birthday present for his wife,. A private party will be held tonight to celebrate Mrs. Wynn's birthday with a special meal, featuring foods prepared by some of the celebrity chefs who have restaurants at the resort.
It's a big weekend in Sin City. In addition to the Wynn opening, the Hard Rock Hotel & Casino is celebrating its ten-year anniversary with concerts by rock acts Coldplay, Bon Jovi and Nine Inch Nails. Hard Rock founder and owner Peter Morton is expected to unveil a $1 billion expansion of the property, which will include a new hotel and a high-end condominium complex that will offer a second home to Britney Spears and other celebs.
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The hotel stands nearly fifty stories above the Las Vegas valley, with a 180-foot tall mountain in front of the main entrance.
The world's most expensive hotel-casino ever has opened in Las Vegas, Nevada. The casino, which was designed and built over a period of five years, cost US$2.7 billion to construct. The hotel stands nearly fifty stories above the Las Vegas valley, with a 180-foot tall mountain in front of the main entrance.

Numerous lavish touches contributed to the high expense of the development. The sign in front of the Wynn property has an unusual mechanical design, with a large piece containing the ''Wynn'' logo, which can move vertically up or down as different announcements are presented.

"I think it's going to start a shift of power. It's been the south for a long time. Things will start moving to the north because of Wynn Las Vegas, Sheldon Adelson with the expansion of the Venetian, the New Frontier -- that whole area will become the new hot area of Las Vegas for the next decade or so," gaming expert Anthony Curtis told ''Las Vegas KLAS TV''.

As the property opened to the public, developer Steve Wynn greeted visitors at the front entrance.

"It's always fascinating to watch people enter the thing and get their first moment after we open the doors," Wynn told the ''Las Vegas Review-Journal''.

===Concern about the cost===

Analysts are not too concerned about the cost of the Wynn development. Wynn paid off the cost of ''The Mirage'' hotel-casino in 18 months, much earlier than the planned seven years for which the debt had been scheduled for repayment.

"If you remember the opening of The Mirage in 1989, Wynn needed to make a nut of $1 million a day. Everyone thought he was nuts; 'couldn't be done,' they all said," Las Vegas history department Chairman Hal Rothman told the ''Las Vegas Review-Journal''.

Wynn sold his interest in Mirage Resorts to MGM Grand (which became MGM Mirage and is now run by Kirk Kerkorian) for US$6.4 billion back in 2000, then turned around and purchased the property for the Wynn hotel-casino for US$275 million. The property was previously the home of the Desert Inn.

The hotel has 2,359 rooms, and a few hundred deluxe suites and "parlors" for high rollers. The casino has 1,960 slot machines and 137 table games on a 111,000 square foot casino floor. A Ferrari-Maserati dealership and the ''Le Reve'' stage show, featuring a million gallon water tank, round out the expensive offerings.

A round of golf will go for US$500 on the elaborate golf course located behind the main building.

All of these specifications add up to a record construction cost of over one million US dollars per room. Other expensive Las Vegas properties cost a fraction of the price, such as the Bellagio, which cost half the price at US$533,000 per room. The most expensive hotel property in the world was previously the Grand Wailea Resort in Maui, Hawaii, which cost US$775,000 per room.

"Yes, (Wynn) may be in over his head, but then he has found ways to survive before," Las Vegas professor Bill Thompson told the ''Las Vegas Review-Journal''.

===Reaction from the competition===
The ''Le Reve'' stage show features a million gallon water tank.
Several of Wynn's largest competitors spoke with admiration of the property and looked forward to its impact on Las Vegas.

"I've never understood the hand-wringing about something new, especially in Las Vegas and Atlantic City," Harrah's Chairman and CEO Gary Loveman told the ''Las Vegas Review-Journal''.

Other casino bosses from the Mandalay and the MGM Mirage had positive comments as well, hoping to pick up some new business from the development.

"It's a positive in terms of bringing more visitors," Mandalay Resort Group President and CEO Glenn Schaeffer told the ''Las Vegas Review-Journal''.

"Steve will build a great property and bring new people to town. If we're doing what we're supposed to be doing, then we'll pick up some of that business also," MGM Mirage Chairman and CEO Terry Lanni told the ''Las Vegas Review-Journal''.

===Reaction from the public===
Thousands of visitors gathered for hours in front of the property before it opened. Security guards had to monitor the number of visitors entering the building.

"I think it's spectacular," David Schwartz, coordinator of the Gaming Studies Research Center at the University of Nevada Las Vegas told ''Reuters''.

"People were pushing and shoving," Las Vegan Kathie Anderson told ''Associated Press''.

"There is nobody in the world who creates such entertaining and beautiful casinos," British billionaire Richard Branson told ''Associated Press'' from the casino floor. "I would say every other casino must be nervous. He's lifted the bar dramatically," Branson said.

"This would be hard to top," Las Vegan Marlene DeMarco told ''Reuters''.