He’s probably not the first, and he won’t be the last:
In a subsequent interview with Bloomberg News, Wynn said much of his desire to leave Las Vegas was because of the country’s economic direction set by Obama.
“The governmental policies in the United States of America are a damper, a wet blanket,” Wynn said. “They retard investment; they retard job formation; they retard the creation of a better life for the citizens in spite of the rhetoric of the president.”
Senate Majority Leader Harry Reid, speaking at a press conference on banking reform, was asked about Wynn’ comments on Obama’s policies.
“I’m not going to get into a dispute with Mr. Wynn, somebody who has done so much for Las Vegas, but I will say that taxes are at an all-time low. The tax picture he complained about is just not there.”
Even if it were true that taxes are at an “all-time low” (does anyone really believe that?), Wynn’s not as stupid as Harry wants him to be. He, and we, can see the taxes coming down the road as a result of the insane spending.
[Update a few minutes later]
“Millions face tax increases under Dem’s budget plan.”
So, what he’s really getting at is that this Administration is retarded.
Maybe he means tax receipts are at an all-time low? Because based on the employment, profit and income picture that may be correct …
Words definitely mean things. I think Brock has nailed the distinction that Senator Reid sought to avoid. Too bad our press simply acts as a megaphone.
If Steve Wynn wants to help Chinese gamblers lose their shirts in Macau, instead of American gamblers in Las Vegas, more power to him! Harry Reid may cry in his beer if Wynn leaves, but so what.
Another interesting fact about Steve Wynn is that he poked a hole in a $140 million painting with his elbow. He had just sold the painting, a Picasso, to another billionaire, then whoops, there goes the sale. I’m not ordinarily jealous of the rich, but hey, I don’t even get to poke holes in $140 paintings, much less $140 million.
Do you have anything to say that’s actually relevant to the point of the post, Jim?
Thought not.
Rand,
That is not that shocking if you follow business in Nevada. MGM was given a choice by the regulators in New Jersey to pick between their Atlantic City or Macau casinos. Guess which one they selected 🙂
http://www.reuters.com/article/idUSTRE62H04N20100318
[[[LOS ANGELES/HONG KONG (Reuters) – MGM Mirage’s plan to exit the mature Atlantic City market in favor of booming Macau removes a year of overhang from the company and should clear the way for a share offering in Hong Kong by June.]]]
But I wouldn’t read any ideology into it. Its strictly business, you go where the revenues are. China is booming and they love to gamble.
[[[Atlantic City, once the gaming capital of the U.S. eastern seaboard, has been hammered by the recession as consumers cut spending. Revenue from its 11 casinos dived almost 16 percent in February to $261.6 million, hurt also by snowstorms that blanketed the northeastern United States.
In contrast, Macau gambling revenue in February was 70 percent higher than a year earlier at about $1.8 billion.]]]
Rand,
I think Jim is just showing us his Puritan roots. Gambling is bad. If Democrat policies push the sin of gambling to foreign shores, then he’s all for it. Just like he’s probably for the anti-obesity laws in dictating what people can eat. And you know, people like him have almost completely done away with cigarette smokers.
We are all supposed to be thankful, so why aren’t we patting the Jim’s and Reid’s on the back? Why do we worry about the Wynn’s, who took money from the poor to become wealthy? What ever we do, we probably shouldn’t point out that Wynn became wealthy by giving people something they wanted for their money. Reid became wealthy by giving people other people’s money collected from taxes.
Going Galt? Balderdash!
Wynn’s Vegas operations have been in serious trouble for a while now. He over-extended himself trying to get the Vegas Encore finished and the rumours around the city last CES were he’d hit problems with the local old guard and was considering Chapter 11 – where he could join Trump and a few of the other casinos.
The money is in Macau now, and not in Vegas. Regardless of the administration, the economic situation in the US dictates a move would be a sound business decision.
Vegas itself is massively over-developed and extended and there’s going to be some attrition. Now the Aria is open and the rest of the City Center complex is coming online, Wynn is stuck out at the wrong end of the strip away from the cool stuff.
3 years ago he was meant to be in the middle of things, with the New Frontier and New Stardust replacements being built – except they’re both empty lots now and likely to stay that way and nobody goes to the Riviera or Circus Circus anymore. He’s got 2 massive hotels stuck in the middle of nowhere, stuck off the mono-rail and hard to get in and out of for the Convention Center.
But I wouldn’t read any ideology into it. Its strictly business, you go where the revenues are. China is booming and they love to gamble.
Yes, this. Look at the money the Sands operation are making from the Macau Venetian – it’s something like double the amount at the Vegas operation.
“Local gaming and government officials instead were expressing skepticism and concern after the Wynn Resorts chairman said on a cable business network Wednesday that he was considering moving his company’s corporate headquarters from Las Vegas to Macau”
I haven’t seen too many slots in anyone’s headquarters, Vegas or not. Lots of accountants, clerical staff and business development people, good paying jobs gone overseas.
Of course the President LIKES business and is doing everything in his power to make it easier to run a business here.
/sarc off
good paying jobs gone overseas.
So? Seriously? SO?
Good paying jobs go over seas all the time, have done for decades, will do so whether or not the current president is president and regardless of his policies or lack there of.
If it makes financial sense for Steve Wynn to move his HQ then move it he should.
Wynn’s real problems have bug all to do with the US administration and the fantasy around here that what Obama says about not gambling[*] and much more to do with the financial horror story that is the Wynn Group at the moment.
Glancing over their public statements they’re looking at reduced incomes in Vegas and horrifically paper thin margins and a negative EBIDT. He gave up on an other US expansion last April in Atlantic City and, as I’ve mentioned, has a couple of luxury hotels stuff on the “cheap” end of the strip near Donald Trump’s white elephant and the two vacant lots where Stardust and Frontier were.
He might be best served consolidating in an area with a huge gambling habit and more money.
However, Vegas is a strange town with a good history of handling business people who upset them. The Trump casino is an interesting example…
So, in conclusion, unless you’re a complete Maroon (pun intended), Wynn is posturing for the value of his shareholders and his remarks have bugger all to do with this nonsense idea of “going Galt”…
Oh, and should the rest of you feel like going Galt, please do let me know, and pass me your customer lists for whatever you do. Myself and some people I know will be more than happy to take up the slack if you find working under these ridiculously low taxes too onerous.
There. Now I feel MUCH better.
*- although, seriously, guys, if somebody is in debt and hard-up they probably ought to think twice about a vacation ANYWHERE let alone Vegas