According to a filing with the U.S. Securities and Exchange Commission, billionaire entrepreneur Tilman Fertitta has purchased additional shares in Wynn Resorts, increasing his stake to 9.9%, making him the gaming company’s largest shareholder.
A Win for Wynn
Although Tilman Fertitta’s SEC filing regarding his most recent purchases of Wynn Resorts stock boosted his total number of shares from 6.9 million to approximately 10.9 million and gave him nearly 10% ownership in the company, his role is defined as “passive.”
However, it is unclear what tact Fertitta will take now that he has eclipsed co-founder Elaine Wynn as the majority shareholder. In 2022, Fertitta purchased 6.9 million shares of Wynn Resorts at $54 per share, but after his recent announcement of acquiring several more million shares, the stock price soared 9% to $93.22 at closing.
Wynn has enjoyed a fruitful year with its Q1 record-breaking Adjusted Property EBITDAR of $646.5 million and year-over-year revenue growth of $400 million. The Q2 earnings report was also buoyant as the company broke its second-quarter Adjusted Property EBITDAR record at a reported $571.7 million. However, an embarrassing scandal surfaced in 2024 involving unlicensed money transmitters gamblers use to circumvent financial laws and regulatory requirements. It triggered a massive $130 million penalty to settle the money laundering suit.
Fertitta’s Next Move
Tilman Fertitta began his entrepreneurial journey as a partner in the first Landry’s restaurant, Landry’s Seafood, in 1980. By 2010, Fertitta had purchased all of Landry’s outstanding shares, and his portfolio had grown exponentially to include a wide variety of hospitality brands ranging from the Golden Nugget casinos to Morton’s The Steakhouse. He is also the owner of the NBA’s Houston Rockets franchise.
His most recent purchase of several million shares of Wynn Resorts’ stock appears to be more than simply a casual investment. John DeCree, an analyst with CBRE Equity Research, believes Fertitta could move in several different directions and explains that there would seem to be a more long-term objective than simply putting his Wynn shares on the shelf until he decides to sell. “Although this looks like a fundamental investment, and we struggle to immediately see any unique strategic alternatives Fertitta could bring to the table, media quickly speculated he could become active sooner than later,” DeCree said in his report.
Fertitta’s Playbook
DeCree believes Fertitta’s latest purchase could be a foreshadowing of a far more aggressive bid in regards to the ownership of Wynn Resorts. “Some of the ideas that surfaced include a strategic merger with Landry’s-Golden Nugget, monetizing the Wynn real estate, exiting Macao, or expanding the Wynn brand across the U.S.,” he wrote. “We explore some of these concepts in this report, but if Fertitta were to make a move, it would likely need to be an outright bid for the company given the complexities of the board and fragmented shareholder base that would make a proxy fight difficult.”
Fertitta’s purchase of additional shares of Wynn is reminiscent of how Landry’s ultimately acquired Morton’s Restaurant Group and McCormick & Schmick’s; both began with SEC filings for stock acquisition in the companies and ultimately ended with complete takeovers. Could Wynn Resorts be the latest in Fertitta’s ever-expanding portfolio? Only time will tell.
Bookmakers Review will continue to monitor the story and update our readers as events unfold.
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