Wynn Withdraws Pennsylvania Casino Application

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It looks like Wynn Resorts Ltd. (NASDAQ: WYNN) is going to keep its high-end domestic growth ambitions localized to Las Vegas, Nevada. Even if it wants to expand domestically, it will be doing so elsewhere other than in Pennsylvania. The company issued a press release on Monday afternoon confirming the end of its local application in that state.

The company’s board of directors recently met to carefully examine the feasibility and opportunities associated with the company’s domestic development in Philadelphia, Pennsylvania. It is a no-go move. The company’s press release said,

“At this time, the Board has decided that the best course for the company is to pursue business opportunities elsewhere… The board took a host of factors into consideration, including the Philadelphia market performance over the past year and the competition which will result from the recent approval of gaming in the State of New York. Consequently, the company will withdraw its licensing applications in Pennsylvania.”

Wynn’s market cap is more than $16 billion, almost all of which is made up of the interests in and developments in Las Vegas and Macau (China). Two clichés seem appropriate here. Wynn does not think it is always sunny in Philadelphia. Maybe whatever happens in Vegas doesn’t have to stay in Vegas, but not in Philly either.

Wynn Resorts’ shares were up 1.2% at $165.80 in late afternoon trading on Monday. Its 52-week trading range is $103.34 to $173.38 and the consensus price target from analysts in the Thomson Reuters coverage universe is $179.38.