Wednesday, December 18, 2002
Copyright © Las Vegas Review-Journal

Wynn maintains focus on Le Reve, Macau work

Steve Wynn Keeping eye out for "an irresistible business opportunity"

Steve Wynn is keeping tabs on possible moves to bring casino gambling to cash-strapped Eastern states, but the Le Reve developer said he's focusing on his Strip and Macau projects.

Recent news stories have reported that Wynn talked to Maryland state officials about prospects for gambling in the Old Line State, and said the Strip developer was interested in a Mexican casino venture if the country liberalizes its gambling laws to allow casinos.

"The only thing that would interest us is an irresistible business opportunity," Wynn said.

Lawmakers in a number of high-profile Eastern states have identified gambling as one possible solution to their growing budget pressures.

Wynn said he talked to Maryland lawmakers in an effort to find out what type of gambling ventures they envision in their state.

"I went to the coast for (late Ambassador) Walter Annenberg's memorial service, and I went to Maryland to visit with some friends of mine," he said. "I wanted to see if I could get an idea about what they could do."

One thing Wynn doesn't want to do is run plain vanilla racinos, pari-mutuel race tracks with slot machines.

"I think the people who play slots and want to have an evening at a casino are different from the people who play the races," Wynn said. "If these states are going to bank on racinos, they're going to have to transform what racinos are."

For Wynn to be interested, the racinos would have to be more like Las Vegas resorts, with upscale retail, entertainment, dining and design components that would draw the kind of revenue operators covet.

"If all they're offering is to throw some slot machines in a clubhouse, then I'm not interested," he said.

Deutsche Banc Securities casino industry analyst Andrew Zarnett said Tuesday that Wynn's strength is creating entertainment destinations.

"That's Wynn's pitch," Zarnett said. "Call me if you want more than just a slot house, if you want more than just gaming revenue. If you want to create a destination, one with tourists, restaurants, retail and attractions that will generate lots of additional revenue, Steve Wynn can do it. If you want something else, he's not the guy."

Wynn noted his longtime friendship with newly elected Pennsylvania Gov. Ed Rendell, like Wynn an alumnus of the University of Pennsylvania.

"I don't know many of these (state lawmakers)," he said. "But Ed Rendell's a Penn man, and he and his wife are dear friends of ours. He's really the only governor I'd talk to, although I do know (New York Gov.) George Pataki."

Florida is one state Wynn said would be particularly appealing if its lawmakers decide to adopt resort-style casino gambling.

Florida Gov. Jeb Bush recently has warmed up to the idea of narrowing his state's budget gap with gambling revenue, and Wynn said the state is ideally suited for a resort-style model.

Most industry experts suggest that Florida's powerful pari-mutuel industry would demand a racino model, with only horse and dog tracks and jai alai frontons allowed to operate slots.

"If Florida had resort-style gaming it would be incredible, a perfect market," Wynn said, adding that he and his wife, Elaine, have long-standing Sunshine State connections. "But this isn't going to happen overnight. We're interested, but the distance is a marathon and a half."

Wynn cited New York and Massachusetts as other key states where budget gaps could lead to state-sanctioned casinos.

"We're talking to a lot of people, but no one really knows anything right now," Wynn said. "This is an open process, and we'll stay in close contact, but we're really looking for a perfect opportunity."

Wynn said reports that he would be interested in partnering in a Mexican casino were exaggerated.

Mexican lawmakers are considering measures that would legalize some forms of gambling, but resort-style casinos have yet to be included in the legislation under consideration.

"I don't think anything will happen down there," Wynn said. "Hypothetically, if something did happen, I guess we'd look at it. But we're not counting on it."

With the $2 billion Le Reve already under construction and with plans to begin building an expensive casino resort in Macau, Wynn admitted that he really doesn't need additional distractions.

"Look, if it's the right opportunity I'd be foolish not to go," he said. "But it would have to be the right opportunity."