The proposed Paradise Park project of Wynn Resorts in Las Vegas, Nevada made progress as the company’s board authorized plans for the $1.5 billion facility.
Earlier this year, CEO Steve Wynn announced the company’s decision to proceed with the project. This project is the newest addition to a series of luxury casino projects situated at the north 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 current Wynn and Encore Casinos. A 20-acre lagoon with an adjacent boardwalk will be the main focal point of Paradise Park. The plans also feature several 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 kind of gaming. Wynn’s vision for Paradise Park is to be a family-friendly destination. In the first quarter earnings call where he unveiled these plans, Wynn likened aspects of the site to Disneyland.
Construction is expected to commence towards the year’s end.
Why expand Wynn’s Las Vegas presence?
The new Paradise Park project is largely funded by the company’s significant cash influx following a successful fourth quarter in Macau last year. The Wynn Palace property, which opened there in August of the previous year, has so far proven to be successful.
Instead of expanding into foreign markets such as Macau, Wynn prefers to reinvest in Vegas. He provided further details during the earnings call.
“We couldn’t find a better way to utilize our money. Maintaining $1.5 billion or $2 billion in the parent company would enable us to adopt the most cautious, yet the most vibrant strategy for its creation.”
Wynn has great non-gaming casino revenue track record
Paradise Park is only the most recent in a line of non-gaming developments by Wynn. Wynn has been pivotal in reshaping the Strip from an exclusive gambling spot to an entertainment hotspot since he launched the Mirage Casino in 1989. Consequently, about two-thirds of the revenue of Vegas casinos are now generated from non-gaming activities.
This strategy is where Wynn properties shine, with Wynn consistently allocating resources to mature this aspect of the business on the Strip. Both Wynn and Encore continually attract patrons through their high-end retail and dining options, and innovative night clubs.
The properties aren’t typically recognized for their family-friendly offerings, a situation Paradise Park is striving to rectify. However, the venue is up against formidable competition. Resorts World is currently undertaking a massive construction project for a similar casino resort just across the road. Additionally, the luxury SLS Resort, which opened its doors on the Strip’s north end in 2014, adds to the competition.
The distinguishing factor for this venture is its focus on family. Unlike luxury resorts that mainly target adult audiences, Circus Circus Casino, located in the same area of the Strip as Wynn and the SLS, specifically caters to budget-conscious families.
Whether a luxury family-oriented Vegas resort will be Wynn’s next major casino innovation remains unknown. However, the company is ready to gamble heavily on this possibility.
Image Credits: popgallery / Shutterstock.com
