Expansion of the Wynn Palace Approved Despite VIP Drop in Macau
Macau has approved the expansion of the Wynn Palace to add a new hotel tower amidst declining VIP spending.
The Government of Macau has approved the expansion plans for the Wynn Palace, allowing for a 17% increase in capacity following the construction of a new luxury hotel tower. Announced at the end of the first quarter of the current financial year, this project will increase the hotel’s capacity by 25%. Craig Billings, CEO of Wynn Resorts, highlighted the high occupancy of the resort. "When you’re at 99% occupancy, you’re not making a speculative bet by adding rooms." Construction will begin this year and is set to be completed in 2028.
Infrastructure Improvements Without Gaming Elements
New features include an 8,787 m² theater and a 23,738 m² event center, according to the Macau Shimbun newspaper. Billings noted that while the Macau market is still driven by VIPs, the expansion aims to capture existing demand. Gross gaming revenues are expected to increase by 400 million dollars. The land will be leased for 650 million patacas, equivalent to 80.5 million dollars. The original proposal from 2023 was revised in 2025 to include the new tower, excluding casino space as requested by the Secretary for Transport and Public Works.
Decline in VIP Spending in the Second Quarter
Wynn expects an improvement in its figures before the tower's completion. The Macau gaming regulator reported a 0.1% drop in revenues for the second quarter, reaching just under 7.6 billion dollars. Although tourist arrivals increased, revenues from VIP rooms fell by 2.6%. However, non-VIP spending rose slightly. The 2026 World Cup could be a factor in this decline, as spending on football lotteries rose by 34%, surpassing 171 million dollars.
Impact of Typhoons and Disease on Casinos
Other factors, such as typhoons and mosquito-borne diseases, have affected the summer plans of the casinos. Typhoon Noul is expected to impact Guangdong Province, likely causing disruptions in maritime transport. Additionally, the Macau Health Bureau is combating dengue and chikungunya through community patrols and mosquito control measures, conducting over 7,750 inspections and 1,524 chemical operations in unsanitary areas. Specific measures have been taken in a 100-meter area around the Wynn Palace.
These developments highlight the opportunities and challenges faced by casino operators in Macau as they work to adapt to current market conditions.
Tags
About the author
Gonzalo Marín
Industry Deals Correspondent
Gonzalo Marín covers the corporate deal flow of gambling — operator strategy, M&A, regulated-market entries, and product launches. The reports open with the transaction, cite companies, valuations, and jurisdictions exactly as released, and keep the announcement apart from its actual effect. When a Latin American operator raises capital or a European brand lands in the region, Gonzalo Marín reports who signs, for how much, and on what terms.
More from Gonzalo Marín
