Wynn Resorts (WYNN) - Get Wynn Resorts, Limited (WYNN) Report CEO Matthew Maddox recently told Real Money’s Jim Cramer that China’s latest crackdown on the Macao gambling hub ultimately won’t put shareholders at risk.
Chinese authorities began a 45-day public consultation earlier this month ahead of a closely watched rebidding for licenses which expire in June of 2022.
Shares of Wynn and other casino operators in the region plunged on the announcement over fears of tighter regulations.
Maddox told Cramer changes under consideration are not punitive, but practical. They're designed with the health and stability of Macao in mind and will likely make Macao just as regulated as Las Vegas is in the U.S., he said. Find out more about Real Money columnist’s investing ideas here.
In addition to Macao, Wynn has properties in Las Vegas and Boston.
Maddox told Cramer that gambling and tourism is beginning to return to both of its U.S. markets. Travel picked up at once after restrictions were lifted between the U.S. and the U.K., he said, and he predicted the rest of Europe will do the same as economies there reopen.
Maddox became CEO of Wynn in February, 2018, following the resignation of Steve Wynn. In the time since, he oversaw the company’s opening of its Encore Boston Harbor property as well over $500 million of added investments in Wynn Las Vegas and Wynn Macao, including a new convention center, remodeled hotel rooms, golf courses and various restaurants.
Wynn is a holding in Jim Cramer's Action Alerts PLUS member club