Casino News: Wynn Fine, Black Fire, Parq Vancouver Debt

Casino News Roundup

It was a week of business news in the casino world as three North American casinos made headlines for very different reasons. Let’s start with the Wynn Resorts in Massachusetts where it seems like the never-ending drama has finally come to an end.

Wynn-Massachusetts Saga Comes To An End As Wynn Resorts Slapped With $35 Million Fine

It’s finally over. The Wynn Resorts drama with the Massachusetts Gaming Commission has come to a conclusion and the result is that Wynn will have to pay a $35 million fine but they’ll still open and operate as expected.

The Nevada Gaming Control board levied a record-setting $20 million fine against Wynn Resorts after its founder was charged with alleged sexual misconduct back in February. However, while some thought that was a fairly harsh penalty in the first place, it certainly wasn’t the end of the discipline process. Following a complete investigation into the company’s knowledge of the handling of Steve Wynn’s sexual misconduct allegations, the Massachusetts Gaming Commission decided to fine Wynn Resorts a whopping $35 million.

The commission allowed Wynn Resorts to keep their gaming licence, so that’s the most important part here. But the punishment was severe nonetheless.

Wynn Reports recently invested $2.6 billion in to Encore Boston Harbor, which is located just six miles north of Boston and scheduled to open on June 23rd. That casino is expected to employ about 5,800 people and generate hundreds of millions in tax dollars for the state. Given its proximity to downtown of such a major city, this property should be a cash cow and this fine will soon be forgotten.

Caesars Entertainment, UNLV Partner To Create Innovative Education Hub

Caesars Entertainment has partnered with the University of Nevada, Las Vegas to create a new technology hub that is titled Black Fire Innovation. The new hub is expected to consist of 43,000 square feet in space and will focus teaching students about gaming and hospitality. It will be the home of mock hotel rooms along with a full casino floor, a sportsbook, virtual reality facilities and an ESports Arena.

It will be located within a research building at the University’s Harry Reid Research & Technology Park in the southwestern region of Las Vegas. The project will pair together the academic leaders at UNLV with the leadership from Caesars Entertainment in order to push the industry to another level. Students can not only provide innovative ideas, they’ll also get good experience should they hope to earn a job in the field after school.

The Blake Fire Innovation project is scheduled to open by the end of 2019.

Parq Casino In Vancouver Aims To Refinance Amid Debt Pressure

Is the Parq Casino in Vancouver already in trouble?

The ownership team behind the Parq Vancouver casino is aiming to refinance in the midst of growing debt pressure. The owners of the luxury casino complex, which opened in 2017, have deferred payment on one of their loans twice already and are facing mounting financial concerns.

Andrew Hood, who is an equity research analyst at M Partners Inc., said that the complex has brought in $170 million in revenue since it opened two years ago. However, the casino has been handcuffed by $152 million in expenses. That leaves them very little wiggle room for operational costs and profits.

The combination of high debt and a high interest rate completely wiped out any profits the company was projected to make in 2018. They need to find a solution quickly or they might have to find another owner with deeper pockets.