Wynn Resorts (NASDAQ: WYNN) Las Vegas regulators have been given permission to operate at 100% capacity, while other casinos are limited to only 80% as almost all of Wynn’s employees have been vaccinated.
Wynn was one of the first casino operators to develop a pandemic response plan and encouraged staff to get the vaccine. The company was able to show the Nevada Gaming Control Board that 88% of its employees have been vaccinated and the board will have it open fully.
The state is planning a date for July 1st so that the rest of the casinos are 100% occupied.
The decision means Resorts Wynn and Encore can remove the plexiglass partitions from their casino, although the resort operator has stated that its employees will continue to “follow health and safety guidelines, including mask compliance, to keep it safe and comfortable.” Ensuring the environment for all “.
While the ability to be fully functional could give Wynn a competitive advantage, it can be limited by lower visit rates.
Visitor traffic in March was 40% below 2019 levels according to the latest available data, and hotel occupancy rates are almost the same. Average daily room rates are down 55% and airport passenger traffic is down 42%.
Wynn Resorts posted a revenue decline of nearly 60% in the fourth quarter, and revenue is also likely to decline in the first quarter. Growing vaccination rates across the country should help consumers feel more comfortable again in places like Las Vegas, however, and Wynn’s ability to be 100% busy could allow him to recover before other casinos.
This article represents the opinion of the author who may disagree with the “official” referral position of a Motley Fool Premium Consulting Service. We are colorful! Questioning an investment thesis – including one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.