Despite what Wynn Resorts Development LCC (WRD) president Chris Gordon has described as a “string of negative events,” the company is still very much intent on making a splash in Japan. However, the eddy of controversy surrounding the company, including sexual misconduct allegations, pending lawsuits and inner strife have not been enough to stave Wynn Resorts off course from Japan.
The Facts of the Hour
During the Japan Gaming Congress (JGC) in Tokyo, which transpired mere days ago, Mr Gordon didn’t miss a chance to highlight how well Wynn Resorts had been accepted by the authorities. While Mr Gordon’s opinion of what had happened is to an extent true, Japan has a long record of handling investors respectfully, whether the country intends to do business with them or otherwise.
What has led to the permeating skepticism that some now feel are how WRD has been handling itself in public over the past several months. A subsidiary of Wynn Resorts, the company has had quite the bad spell. Sexual misconduct allegations came to bear, involving CEO Steve Wynn.
Board members have been in the eye of a legal storm and while the metaphor would normally suggest that they have got off unscathed, in this case, the mounting pressure on all sides has finally forced a number of them to resign.
Plans for Future Expansion in Japan
Mr Gordon doesn’t intend to back off Japan despite what has been happening. He believes that the company is well-poised to increase its non-gaming revenue by obtaining a gambling license in Japan and will continue to push strongly for it.
Presently, the government of Prime Minister Shinzo Abe has endorsed plans to issue a license for land-based casinos. If the plan is sanctioned in the national Diet, WRD may be one of the companies to profit dramatically. As a point of comparison, WRD operates a Las Vegas resort that operates 60% of its revenues through non-gaming operations.
Wynn Resorts’ will hopefully develop a large-scale project that will feature the latest amenities and facilities to guarantee guest satisfaction. If such a plan gets the go-ahead, the resulting area will exhibit a strong focus on Japanese culture. By initial estimates, the resort will feature between 3,000 and 5,000 hotel rooms.
Mr Gordon’s plans for the future are quite well-aligned with Japan’s own plans. Rather than creating seedy gambling dens, Japan, and on this occasion WRD, want to create venues where industry leaders could meet during conferences and exhibitions in the region.
How Would it All Play Out in the End?
Nobody can tell for sure what the future holds. WRD seem confident in pushing ahead with its plan on expanding business operations in the region despite the bad turn of events that has buffeted its reputation.
According to JGC secretary Koichi Hagiuda, it’s important to develop a future resort that focuses not so much on the gaming industry per se, as it makes sure that the project showcases “Japan’s strengths.” This coincides directly with what WRD and Mr Godon have been openly saying in public.
