The owner of Encore Boston Harbor casino has agreed to expand with up to two new hotels in Everett, Massachusetts, without gambling, and to invest up to $25 million in a new commuter rail stop, aiming to boost local development, tax revenue, and community benefits. The deal was finalized just before the new mayor took office, with plans for hotel completion by 2028 and ongoing transportation enhancements, including a proposed rail stop to improve access.
Wynn Resorts is making a significant investment in the UAE with a $3.9 billion luxury casino resort in Ras Al Khaimah, set to open in 2027. This marks the UAE's first foray into commercial gaming, with Wynn securing the first casino license from the newly formed General Commercial Gaming Regulatory Authority. The project is a joint venture with RAK Hospitality Holding and aims to capitalize on the UAE's large expatriate population and proximity to major travel hubs. Wynn's early move positions it ahead of other potential casino operators in the region.
Wynn Resorts has reached a tentative labor deal with Las Vegas unions, averting a strike that could have severely impacted tourism in the city. The five-year agreement covers 5,000 employees and includes wage increases, reduced room quotas, and daily room cleanings. Similar deals were recently reached with Caesars Entertainment and MGM Resorts International. Negotiations are ongoing with smaller casinos and resorts. The agreement comes as workers in various industries seek wage hikes amid strong company sales. President Joe Biden praised the deals, stating they will improve workers' quality of life.
Former MGM Resorts International Chairman and CEO, Jim Murren, has been appointed as the chairman of the General Commercial Gaming Regulatory Authority (GCGRA) in the United Arab Emirates (UAE). The GCGRA aims to establish a regulatory framework for a national lottery and commercial gaming, ensuring a socially responsible and well-regulated gaming environment. Kevin Mullally, former Missouri Gaming Commission Executive Director, has been named CEO of the GCGRA. This move comes as Nevada-based companies, including Wynn Resorts, are expanding into the UAE, with Wynn Resorts building a $3.9 billion integrated resort development in Ras Al Khaimah.
Wynn Resorts will be shutting down its WynnBET online sports betting and online gaming platforms in eight out of the twelve states where it operates, citing high costs and intense competition. The company's operations in Nevada and Massachusetts will not be affected. Wynn Resorts plans to work with regulators and customers to cease operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. The company is also reviewing its operations in New York and Michigan. WynnBET has struggled to gain significant market share, with four dominant operators controlling the majority of the sports betting business. The decision reflects a focus on capital deployment in states where Wynn Resorts has a physical presence.
Wynn Resorts' second-quarter earnings report contains several positive factors that could potentially boost the company's stock price, which has been trading sideways in recent weeks.
Disney's stock rose 5% after reporting mixed quarterly results, including higher-than-expected earnings but a decrease in Disney+ subscribers and a streaming price hike. Wynn Resorts saw a 2.5% increase in its stock after beating expectations with its second-quarter results. AppLovin shares surged 22% on strong Q2 results and optimistic Q3 revenue guidance. Illumina's stock dropped over 6% due to weaker-than-expected guidance for the second half of the year. The Trade Desk's stock fell nearly 4% despite posting better-than-expected quarterly results. Sonos' stock jumped 11% after reporting stronger-than-expected results and raising its full-year EBITDA guidance.
Soft post-Covid economic activity in China could lead to more stimulus support, which would benefit Estee Lauder, Starbucks, and Wynn Resorts, all of which have significant exposure to the Chinese market.
GameStop's shares fell by nearly 21% after the company announced the ousting of its CEO. Wynn Resorts and Las Vegas Sands both shed about 2% following a downgrade by Jeffries to hold from buy. Signet Jewelers' shares tumbled nearly 11% after the jeweler provided second-quarter revenue and operating-income guidance that fell short of expectations. Lucid's shares advanced about 2% after the company's head of China operations said the electric vehicle maker is preparing to enter the Chinese market. T-Mobile's shares added about 1% in premarket trading after Wolfe Research upgraded T-Mobile to outperform from peer perform.
Western Alliance's deposit growth for the current quarter exceeded $2 billion, causing shares to rise 12% premarket. TJX Companies' shares fell about 1% after reporting a revenue miss and lower-than-expected guidance. Target surpassed earnings expectations in the fiscal first quarter, but expects sales to remain sluggish in the current quarter. Keysight Technologies' shares soared 7.8% following an earnings beat. Wynn Resorts' shares rose 2.7% after an upgrade to overweight from equal weight at Barclays. Tesla's shares rose 1.5% premarket after announcing the delivery of its first Cybertrucks later this year.
