Wynn chairman Satre expects Las Vegas will continue to thrive

Las Vegas will continue to succeed by attracting high-profile nongaming events, even though its status as the gaming capital of the world disappeared a long time ago.

Phil Satre, non-executive chairman of the board of Wynn Resorts Ltd. since November 2018, told the Las Vegas Economic Club Wednesday that even though people no longer come to Las Vegas just to gamble, the city’s foresight to host experiences like the Sphere, Allegiant Stadium and the new baseball stadium on the Strip for the Athletics has kept the city as a place to go for fun.

“What’s changed in this industry after the erosion of our monopoly in the state of Nevada and with the opening of resorts in Atlantic City is that we’ve had a tremendous amount of new competition for what we do in Las Vegas and Reno,” Satre told about 100 people attending the Economic Club’s event. “Las Vegas has, I think, thrived with that.”

Proliferation of gaming

The proliferation of gaming across the country has actually helped Las Vegas, he said, because it’s forced the city to deliver attractive nongaming activities for people to experience.

“I think that proliferation is probably the most significant impact on the industry during the period that I’ve been involved with it,” he said. “The other part of it has been fascinating for me is the growth in nongaming revenue versus gaming revenue, and many of you in this room would know that when in the 1970s and in the 1960s, this was a 90 percent casino, 10 percent nongaming revenue industry, pretty much.

“And what’s happened is that’s not quite flipped, but it’s gotten pretty close. We now have a customer base that has lots of choices, and if they come to Las Vegas, one of the things that I think they’re most interested in is our nongaming events happening all throughout the city and at properties throughout the city. And I think that’s one of the healthiest evolutions for this industry, is that we now are not dependent on just people coming in to make a bet, because if we were dependent on that, they have lots of other opportunities that don’t require them to get in the car or get on an airplane or spend three nights in a hotel.”

Satre said his former hometown of Reno hasn’t embraced the concept, which is why Las Vegas is soaring and Reno is foundering.

Satre said another positive change in the industry has been Las Vegas’ willingness to place women and people of color in management positions to better diversify the workforce.

Formerly the chairman and CEO of Harrah’s before it was acquired by what is now Caesars Entertainment and a former member of the boards of directors of Nordstrom Inc., International Game Technology PLC, NV Energy, Tabcorp Holdings Ltd. (Australia) and Rite Aid Corp., Satre presented a brief slide show of images of Wynn’s newest project, Wynn Al Marjan Island in the United Arab Emirates. The $3.9 billion integrated resort in Ras Al Khaimah, is due to open in 2027.

“Obviously, we have some turbulence going on in that area of the world, but we actually have a tremendous amount of construction workers in our leadership in our construction department and design department,” he said.

Integrated resort

When completed, Wynn Al Marjan Island will have more than 1,500 rooms and suites, many of them in a 70-story beachfront tower on the Arabian Gulf, 50 miles south of Dubai International Airport. The UAE’s first integrated resort also will have a 1,300-foot white sand beach, a 98-berth deepwater marina, 12 pools, 22 dining, bar and lounge experiences, a 900-seat theater, a full spa with multiple treatment areas and salons, 130,000 square feet of luxury retail space, a museum-caliber art gallery and a 145,000-square-foot event and celebration center.

Satre isn’t worried that Wynn Al Marjan Island or the company’s properties in Macao are going to steal customers from Las Vegas, but that the city needs to be reactive to criticism that it is becoming overpriced.

“We’ll reach a point where we have to pull back, where we can’t continue to escalate and escalate (prices),” he said. “But we also are seeing an increase in the capacity of people who can afford to come here. I mean, there’s more and more billionaires and more and more millionaires that are being created, not just in this country, but throughout the world. I think if we don’t invest the capital it becomes even more expensive, and we have to charge more because of that investment of capital.

“But I think if we didn’t do it, we would be losing out to other venues throughout the world. I don’t think we need to worry that we’re going to lose customers necessarily to Macao or to Wynn Al Marjan. I think we’ll just lose customers, period, if we’re not careful.”

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.