Wynn Resorts’ management strategy and its declining stock price concern Tilman Fertitta. Recently, Fertitta flew to Italy as the U.S. ambassador, but before his departure, his legal counsel addressed these issues to the Nevada Gaming Control Board. This aligns with an earlier report by Bloomberg about Fertitta’s dissatisfaction. Fertitta now holds 12.58 million shares in Wynn, increasing his stake to 9.9% last November. Despite his concerns, he remains listed with the SEC as a passive investor.
In the latest board meeting, Steven Scheinthal, General Counsel for Fertitta Entertainment, revealed Fertitta’s discontent. “Mr. Fertitta wanted me to let the Board know that he’s not happy with the stock price or with Wynn’s management decisions,” Scheinthal stated. The stock recently closed just over $87, a decrease from its 52-week high of $107.51. Read more about Fertitta’s views on the company.
Wynn Stock Price Concerns
Concerns about the Wynn stock price are partly due to a significant financial penalty. Wynn forfeited $130 million to the U.S. government over AML violations and was fined $5.5 million by Nevada regulators. The indictment involved unlicensed money-transmissions, a matter connected to the company’s previous owner, Steve Wynn.
Board member George Assad praised Fertitta’s investment acumen. “I have followed his career and value him as an expert,” Assad noted, referencing Fertitta’s success with the Houston Rockets. Despite these challenges, Fertitta maintains a positive outlook on the Al Marjan resort project in the UAE, expected to open in 2027.
Future Prospects Amid Concerns
The anticipated completion of the Al Marjan project could improve the Wynn stock price, according to Scheinthal. While Fertitta did not divulge an ideal stock value, he expressed dissatisfaction with current levels, highlighting management opposition as a reason for the price lag. The project could present a lucrative opportunity for Wynn.
Fertitta, who didn’t attend the recent hearing, delegated comment responsibilities to Scheinthal due to preparations for his ambassador role. With significant commitments in Italy and San Marino, Fertitta has reduced his involvement in domestic business operations. Visit the American Gaming Association for more on industry standards and compliance.
