Wynn Resorts is bucking the trend in Las Vegas by betting big on luxury, and it’s paying off. While other casinos face pushback over high prices, Wynn’s focus on high-end customers drove strong third-quarter results in 2025, with CEO Craig Billings insisting they deliver real value without overcharging. But how does this strategy hold up in a city where visitors are getting pickier?
Wynn Resorts reported impressive gains for its Las Vegas properties in the third quarter of 2025. Operating revenues climbed by $13.6 million, and adjusted EBITDA grew 3% to $111 million, even against tough year-over-year comparisons. This came as the company wrapped up earnings reports for major Strip operators.
Casino revenue jumped 10%, fueled by solid increases in drop and handle. Hotel revenue stayed flat at $187 million, a deliberate choice to keep occupancy lower and maintain high room rates. Billings noted notable market-share gains, showing demand remains healthy for their premium offerings.
This performance stands out in a challenging market. Las Vegas has seen visitor numbers drop by about 2 million this year, the worst decline since 2008. Yet Wynn’s luxury positioning seems to shield it from the broader slowdown.
Wynn’s two Las Vegas resorts, Wynn Las Vegas and Encore, cater to affluent guests who value top-tier experiences. From fine dining to exclusive gaming, the company prioritizes quality over volume.
CEO Defends Pricing as Fair Value
Craig Billings, Wynn’s CEO, addressed the summer backlash against Las Vegas pricing head-on during the earnings call. He explained that Wynn avoids gouging customers, unlike some competitors on the Strip.
“Wynn Las Vegas is not necessarily built for those visiting on a tight budget,” Billings said. He stressed that their high room rates come with unmatched value, like superior service and amenities that justify the cost.
This approach has helped Wynn outperform rivals. For instance, while Caesars Entertainment saw profits bleed, Wynn’s net income rebounded to $88.3 million in Q3 2025, swinging from a prior-year loss.
Billings highlighted strategic decisions, such as accepting lower occupancy to preserve rates. This keeps the brand’s luxury appeal intact, attracting high-spenders who boost overall revenue.
In a city where cocktails can hit $30 and resort fees add up, Wynn positions itself as a premium escape. Their focus on mass-market luxury hospitality is expanding beyond Vegas, with plans for the UAE that could reach 96% of the world’s population within an eight-hour flight.
Market Challenges and Wynn’s Resilience
Las Vegas is grappling with economic pressures. Real revenue for Nevada casinos hasn’t recovered to 2007 peaks, adjusted for inflation. Nominal figures show January 2025 at $1.468 billion, up from 2007’s $1.235 billion, but the growth feels hollow amid rising costs.
Wynn’s results buck this trend, with Macau operations also shining. The company’s overall revenue hit $1.83 billion, up 8.3% year-over-year, beating estimates. Macau drove much of the growth, but Las Vegas held strong.
Here’s a quick look at Wynn’s Q3 2025 segment highlights:
| Segment | Revenue | Adjusted EBITDAR |
|---|---|---|
| Wynn Palace (Macau) | $635.5M | $200.3M |
| Wynn Las Vegas | (Part of $13.6M increase) | $111M (3% growth) |
This diversification helps Wynn weather Vegas-specific issues, like the 9% drop in visitors tied to tapped-out consumers with average savings of just $9,869.
Despite flat hotel revenue, Wynn’s casino side thrived. Billings pointed to healthy demand, with increases in gaming activity showing luxury seekers are still spending.
The broader Strip sees shifts too. Gaming now makes up only 24% of revenue for top casinos, down from 75% decades ago. Younger visitors gamble less and drink less, pushing operators to hike prices elsewhere.
Wynn adapts by emphasizing experiences. Their resorts boast 4,748 rooms combined, ranking among the world’s largest, yet they focus on exclusivity.
Global Expansion Fuels Future Growth
Looking ahead, Wynn is expanding its luxury model globally. The upcoming Wynn Al Marjan Island in the UAE, set for 2027, marks a bold move. Billings expressed confidence in this diversification, projecting EBITDAR contributions from Las Vegas at 35%, Macau at 43%, Boston at 13%, and UAE at 9%.
This strategy reduces reliance on Vegas, where tourism officials blame high costs for declining visits. Add-ons like $50 daily parking and various taxes inflate bills, but Wynn claims their pricing offers better value.
In Macau, Wynn achieved healthy market share with a big jump in mass table drop. Overall, the company’s third-quarter EBITDA grew impressively, driven by these key markets.
Billings remains optimistic. “Our third quarter results were marked by impressive EBITDA growth in Macau and continued outperformance in Las Vegas,” he said.
This global push could redefine Wynn as a worldwide luxury leader, tapping into new affluent markets.
Wynn Resorts’ luxury strategy in Las Vegas proves that in a price-sensitive market, focusing on high-value customers can drive success, as shown by their solid Q3 2025 earnings and market-share gains. By prioritizing quality over quantity, they’ve navigated economic headwinds better than competitors, offering a model for resilience in the hospitality world.
