This just in: Wynn goes to Philly
As of this moment (i.e., while I’m typing), Hunter Hillegas‘ blog has what neither the Las Vegas Sun nor the Las Vegas Review-Journal do: the breaking news that, yes indeed, Wynn Resorts is riding to the rescue of the hapless Foxwoods-in-Philadelphia casino. Wynn’s official announcement is extremely circumspect as to the extent of the company’s remit as managing general partner, although the terms “decisive leadership” and “superior quality of design” spring to mind (see below).
How do you spell ‘fugly’? F-o-x-w-o-o-d-s
It also makes no mention of Foxwoods, which either portends an ownership shift or is simply a snub of MGM Mirage, which partnered with Foxwoods in Connecticut. Although Foxwoods is officially still in the picture, back home it’s struggling with the equivalent of bankruptcy. Wynn has been stockpiling cash, so a takeout of Foxwoods is conceivable — perhaps inevitable and definitely preferable now that the Wynn brand renders the Foxwoods one superfluous. (I mean, seriously, which name would you rather have on your casino?)
I won’t say that licensure is “a mere formality” but, compared to the quality of some of the casino owners approved in the Keystone State (coughDon Bardencough), Steve Wynn raises the Pennsylvania casino industry’s respectability quotient considerably. He’s also very bad news for Philly-based casino opponents. They seemed to have little trouble tying Foxwoods’ shoelaces together but against Wynn’s characteristic mixture of media savviness, charm and pugnacity they haven’t a chance. Even in a more competitive market than Bethlehem, methinks Wynn is going to be rubbing Sheldon Adelson’s nose in it very shortly.
Update: Analyst Joseph Greff of J.P. Morgan has fisked the Wynn announcement and reached a few conclusions, starting with the assumption that Wynn will become the actual majority owner, not merely the de facto one. Although there’s a lack of clarity so far as to whether the Wynn name will go onto the façade, Greff writes, “We believe Wynn was brought in given its strong brand and operating prowess as well as its strong capital position (something we understand the existing partners were lacking, at least in full).” He projects a late-2012 opening and a total cost of $600 million.
As for the much-criticized look of Foxwoods Philly, DeRuyter Butler and Roger Thomas may soon be playing Mr. Fix-It. Greff predicts a design overhaul “with the end result being a typical higher-end Wynn casino with hotel and non-gaming amenities aimed at the upper end of the East Coast market.” Potential losers in Greff’s scenario are Boyd Gaming (greatly increased competitive pressure for Borgata) and MGM Mirage, whose Atlantic City real estate and Borgata half-interest are already distressed assets and look like they’re about to take another pummeling. Regardless of when MGM decided to evacuate New Jersey, history will probably record that the company took too long about it and literally paid the price. Steve Wynn must be enjoying several different flavors of schadenfreude tonight.
Subscribe to blog feed.
About the Author: Bio
February 24th, 2010 at 6:03 am
Definitely an interesting development. In thinking about this, I began to wonder, is Philly the largest metro city that’s going to have casinos downtown? Detroit does and they maybe larger, but I can’t think of any other ‘large’ cities with a casino within city limits. Illinois has them, but they tend to be in the vicinity of Chicago.
February 24th, 2010 at 4:27 pm
they can call it the Wynnwood.
February 24th, 2010 at 4:35 pm
I love it! Can that be our S&G nickname for it until it gets an official moniker?
February 24th, 2010 at 5:49 pm
Jinx,
I don’t if you would consider it sufficiently large, but Pittsburgh, PA has a new one on its north side, across the river from “downtown”.
February 24th, 2010 at 6:55 pm
Pittsburgh’s metro area has about 2.5 million. Philadelphia is at 5.8mil. According to wikipedia Philly is the 5th largest city in the U.S.
Pittsburghs a bit smaller then Cleveland, although the lines get blurred when you start including suburbs and such, although Cleveland won’t have a casino for another couple years.