Wynn and Sands could take a beating in the hotly contested Macau market when a new casino opens its doors. This is not taking on board the amazing problems facing the two companies in their home territories of Las Vegas. The main problem being overcapacity in the strip.
Analyst cuts Wynn, Sands targets Casino operators Wynn Resorts and Las Vegas Sands Corp. have the most to lose when Melco Crown Entertainment's City of Dreams resort opens next month, an analyst recently stated. Janet Brashea has high hopes for the Melco City of Dreams, which is set to open June 1 in Macau. She predicts the casino will pull in $1.4 billion in gross gaming revenue next year and 10 percent of market share.
While Brashear anticipates visitation could pick up by about 10 percent because the property will spark interest because it is new, she anticipates it will come at the expense of the Wynn Macau and Sands' Venetian Macao.
Melco Crown develops and owns of casino resorts in Macau. The Hong Kong-based company's stock rose steeply on this news.
