The proposed Paradise Park project by Wynn Resorts in Las Vegas, Nevada, has progressed as the company’s board has approved plans for the $1.5 billion facility.
Earlier this year, CEO Steve Wynn declared the company’s progress on the project. This is the newest addition to a series of high-end casino projects situated on the northern end of the Las Vegas Strip.
Centerpiece of Paradise Park will be 20-acre lagoon
The project site is a 130-acre golf course located behind the existing Wynn and Encore Casinos. The main attraction of Paradise Park will be a 20-acre lagoon, complemented by a surrounding boardwalk. In addition, the plans feature numerous white sand beaches, cabanas, and restaurants facing the lagoon.
In addition to meeting and convention space, plans are also underway for a tower that could accommodate over 1,000 additional hotel rooms.
The plans notably lack any provision for gaming, as Wynn aims for Paradise Park to be family-friendly. He announced these plans during the first quarter earnings call, during which he likened aspects of the site to Disneyland.
Construction is set to commence towards the year’s end.
Why expand Wynn’s Las Vegas presence?
A significant portion of the funding for the new Paradise Park project originates from the company’s substantial cash surplus, following a highly profitable fourth quarter in Macau last year. The company inaugurated a new property, Wynn Palace, in August of the same year, which so far has been successful.
Wynn prefers to reinvest in Vegas instead of expanding into foreign markets like Macau. He expounded on this during the earnings call.
“There’s no better way for us to utilize our money. By retaining $1.5 billion or $2 billion in the parent company, we can adopt a strategy that is not only the most cautious but also the most dynamic in creating this.”
Wynn has great non-gaming casino revenue track record
Paradise Park is the most recent non-gaming innovation from Wynn. Since he launched the Mirage Casino in 1989, Wynn’s strategic choices have played a crucial role in the transformation of the Strip from a gambling-exclusive destination to an entertainment hotspot. Consequently, about two-thirds of Vegas casino revenue are now generated from non-gaming activities.
With a successful strategy, Wynn properties continue to thrive and Wynn is consistently investing resources to expand this aspect of the business on the Strip. Both Wynn and Encore are attracting customers through their luxury retail and dining options, coupled with innovative nightclubs.
These properties don’t have a reputation for being family-friendly, but Paradise Park is planning to change that. However, it’s in a competitive environment. Resorts World is currently building a similar casino resort just across the road. Additionally, the luxury SLS Resort, which opened on the north end of the Strip in 2014, adds to the competition.
What distinguishes this venture is its focus on the family. These luxury resorts primarily serve an adult clientele. Although the Circus Circus Casino is located in the same area of the Strip as Wynn and the SLS, it undoubtedly targets budget-conscious families.
It’s still uncertain whether a luxury family-oriented Vegas resort will be Wynn’s next significant casino innovation, but the company is ready to stake a lot on its success.
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