Having inherited several gambling clubs and huge debts from his father, he paid off his creditors and created a network of luxury entertainment complexes, first in the United States and later in China. This is the story of a man who is called the King of Las Vegas – Steven Wynn.
Early Years and Education
When Steve was a little boy, his family lived in Las Vegas, where his father worked in the local gambling saloon. A ten-year-old boy felt the beauty of the city and saw the influence of the owners of large establishments driving around in expensive cars. He understood what opportunities were open for those who were engaged in the gambling business.
The boy’s father tried to give his sons a good education and sent Steve to the Manlius military academy, where he was taught discipline. Steve’s parents did not want their son to be associated with bingo clubs: in society, people from this sphere had a negative reputation, as well as, for example, bookmakers or money lenders. After graduating from the military academy, Wynn went to the University of Pennsylvania to get a Bachelor of Arts in English Literature. The end of his studies coincided with the tragic event – his father Michael Wynn died of a heart attack, leaving his several bingo saloons – the predecessors of modern online casinos and debts for $350 thousand. Fortunately, today you don’t need to wonder where to play online baccarat or slots as the choice is really huge.
Family Business and Creditors
Steve had to abandon his education at Yale and become involved in the family business. He informed his father’s creditors that he knew regarding the problems and was solving them, and began to expand the network of saloons. Business went smoothly: Wynn not only increased profitability but also purchased an establishment of the competitor. In the end, he paid off his debts and began to think regarding further growth.
In 1967, one of the father’s former partners offered the entrepreneur to invest in the famous Frontier hotel in Vegas. The cost of 3% of the business was regarding $75 thousand. According to some sources, Wynn did not have that money, and he began to borrow and apply for loans. In any case, Steve became the owner of this share and went to the city of his dreams – Las Vegas.
In the late 1960s, the famous businessman Howard Hughes became interested in the Vegas gambling business. The billionaire’s interest was attracted by the Frontier. Suddenly, press publications appeared claiming that most of its owners were gangsters. The police and the FBI became interested in the case, everyone was under investigation, but Wynne got the least of all – he simply lost his share.
Under the Perry Tomas’ Influence
Thomas was perhaps the most influential banker in the city: whether the entrepreneur received a loan largely depended on him. He dreamed of laying the foundation for a new Vegas and trusted educated businessmen who would act legally. Therefore, he was interested in Wynn, who was educated, had no problems with the law, and was sincerely passionate regarding the idea of a casino. Several key events influenced Wynn’s further business growth:
1) There was a small plot of land near Caesars Palace casino that was not used. The banker helped Wynn initiate purchase negotiations. Thomas helped pay for the purchase by providing a loan of $1.2 million.
2) The entrepreneur also acquired the Best Brands Wine & Spirits of Nevada company, which was engaged in the supply of wine and other alcohol, and found points of sale in Vegas.
3) Thomas advised Wynn to start acquiring shares in the Golden Nugget casino. At that time, the institution lost in profits needed repairs and personnel changes. Wynne breathed new life into the casino: he made renovations and began inviting celebrities for concerts. A frequent visitor was Frank Sinatra, who soon became a friend of Wynne.
With the help of Perry Tomas, things went smoothly, and Steve, who became the youngest owner of a casino in Vegas, began to make money on it.
Atlantic City
In 1980, the gambling business was allowed in Atlantic City, which attracted a huge number of investors to the city. Steve Wynn was also inspired by the assurances that Atlantic City would become the new gambling capital and entered the market with his Golden Nugget brand.
The construction of the Golden Nugget was started in 1980: the casino became the most profitable in the city. However, in 1987, when it became clear that the new Vegas from Atlantic City would not be, Wynn sold the institution, having received $440 million from the deal. After the success in Atlantic City and the junk bond deals, Wynne was able to invest in a global project by attracting several more investors. Casinos in Las Vegas became a new direction of the entrepreneur’s work: this is how Mirage, Treasure Island, and Bellagio appeared.
Investing in China
After gaining success in Las Vegas, Wynn reached an agreement with the Macau Autonomous Region in China to open an entertainment complex there. The project began to be developed in 2003, and the construction was completed three years later. The luxurious Wynn Macau Hotel & Casino includes nearly 400 slot machines, 375 gaming tables, restaurants, cafes, attractions, brand stores, and numerous spa services. The complex was ranked among the top ten in Asia, confirming Wynn’s ability to build an entertainment business in any part of the world.
In 2010, Encore at Wynn Macau was opened. In general, the hotel is similar to its American counterpart, except that the interior is decorated in an oriental style. Thus, Wynn strengthened his positions in China: the 2008 crisis affected Las Vegas, and in Asia, the entrepreneur saw a new niche. Encore and Wynn Macau are among the largest entertainment complexes in the world and provide the lion’s share of the company’s revenue.
In Conclusion
We cannot say that everything has been smooth in Steve Wynn’s business over the past decade. In addition to lawsuits, he faced crises both in Vegas and in China. Wynn has many times emphasized that he sells not the excitement or the opportunity to win, but high-class entertainment and his clients are attracted not by the game, but by the elitism of the establishments. Now the ambitions of an entrepreneur are generally focused on China, where he will apply extraordinary skills and knowledge to gain success.
