Wynn Resorts, a company with six massive casino resorts, is pausing hundreds of millions of dollars in spending due to the impacts of the Trump administration's tariff policies.
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The Las Vegas-based company announced in its first-quarter investor presentation Tuesday it would be halting $375M in U.S. capital expenditures “in light of the present uncertainty regarding tariffs and their potential impact on the cost of materials sourced from overseas.”
“We had a number of capex projects in flight in the U.S.,” Wynn CEO Craig Billings said on Wynn's Tuesday earnings call. “And while we have sourced for those projects presuming some tariff impact, the current tariff rates have driven us to delay about $375M of capex projects.”
The vast majority of the expenditures were slated for a remodel of the Encore Tower in Las Vegas. Wynn's spending on the over 2,000-room tower is projected in the high $200M range, Billings said.
He declined to detail the other projects that make up the spend.
Executives on the call said Wynn expects to spend the $375M at some point, but the timing is uncertain.
“Once tariff rates have settled, we will thoroughly respect and resource the most severely affected items,” Billings said. “While we're staying nimble, the pace of change at the moment is just too significant to commit to revised timing on that capex.”
The Trump administration has placed a 145% tariff on most goods from China, a 10% tariff on imports from most other countries — after announcing higher rates and then pausing them — and a 25% tariff on aluminum and steel. U.S. and China officials are set to sit down for talks this week.
Wynn Resorts owns and operates a two-tower complex in Las Vegas, a casino resort in Boston and two in Macau, China. It has one under development on the United Arab Emirates’ Al Marjan Island slated to deliver in 2027.
Wynn's earnings for Q1 came in at $1.07 per share — below forecasters' $1.22 projection. Its operating revenues were $1.7B, missing the $1.73B expectation by 1.5%, and its quarterly revenue fell 8.7% year-over-year.
CORRECTION, MAY 8, 2:10 P.M. ET: A previous version of this article mischaracterized Wynn Resorts' business. It has been updated.
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