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twitterDaily Memo: Gaming:
Steve Wynn’s politics in the news, but not new
Casino magnate was an industry advocate before an Obama critic
Monday, Nov. 2, 2009 | 2 a.m.
Steve Wynn on Fox News
Sun Archives
- Obama’s way means ‘lights out’ for Vegas, Wynn says (10-26-2009)
- Government doesn’t do much for Wynn, or does it? (10-26-09)
- Gaming execs credit stimulus with saving Nevada jobs (10-22-2009)
- Wynn still critical of Obama administration (7-30-2009)
- Wynn: Stimulus plan won’t solve city’s woes (4-10-2009)
- Wynn: Obama’s remarks bad for convention business (2-26-2009)
Sun Coverage
Steve Wynn, one of the most charismatic figures in American business and the man largely credited with launching the modern building boom in Las Vegas, is also fiery-tempered, with mercurial moods and politically incorrect outbursts.
His contribution to a Fox News Sunday round table last month began with this zinger against the Obama administration’s handling of the federal stimulus and health care: “Government has never increased the standard of living of one single human being in civilization’s history.”
Though many of Wynn’s peers agree with his thesis — the nation should focus on private-sector job creation rather than an all-consuming reform of health care — they understandably cringed at his delivery of it.
“That’s so simplistic,” round-table participant and Michigan Gov. Jennifer Granholm replied.
“There’s nothing simplistic about my approach to this problem,” Wynn shot back, his indignation palpable. “I’m saying the source of government revenue, the source of well-being in this country, is employment. That allows companies to pay taxes, employees to pay taxes. I’ve got 20,000 employees. I’ve had as many as 150,000 families that I’ve been self-insuring.”
Though blaming Obama for the poor job outlook sounded like a typical partisan attack, it comes with a history of self-preservation that has little to do with politics.
When opening his Encore resort, planned and executed before the recession, in December, Wynn spent most of his time with reporters discussing the need for the Obama administration to focus on job creation. Consumer spending begins with jobs, he said, adding that his luxurious resort would charge only $129 a night for rooms.
Wynn has often referred to his resorts as the impetus for broad economic development and well-being. In years past, Wynn has said that his employees should feel lucky to work at his resorts, which he boasts are more luxurious and make more money than the competition. In a controversial move to give a share of casino dealers’ tips to their front-line supervisors in 2006, Wynn told his dealers that they were able to earn big tips only because he had built lavish resorts in the first place. And yet, to the industry’s surprise and dismay, even cheaply priced luxury is too much for this economy.
Casino executives have played politics for a few decades because the industry has needed political support to expand nationwide, and they have hedged their bets by giving money to both parties. Casino bosses ascribe to a form of controlled libertarianism that doesn’t readily fall into either party’s belief system. Executives and their political action committees have tended to court moderates who are less apt to push for federal regulation.
So while the Las Vegas tourism industry has been among the most hammered by a recession that has slashed discretionary spending, casinos would probably be the last big businesses in America to receive any kind of government assistance. Unlike other businesses, casinos exist at the behest of state governments for the purpose of generating tax revenue for those states.
Though the industry wields considerable state influence as the source of half of Nevada’s budget and a significant chunk of other states’ budgets, it plays defense at the federal level, lacking the clout or credibility of old-line industries with deeper political ties.
“We’ve had the experience of watching people fall all over themselves to put cash in the hands of banks and car companies — companies that have historically produced lower-quality products than other places or products people didn’t want, or that were impervious to criticism and calls for change,” said one casino executive, who spoke on the condition of anonymity.
The stimulus hasn’t helped restore consumer confidence, which underpins the tourism business. Last week Wynn’s company reported that third-quarter earnings were two-thirds those of the previous year, when the stock market tanked and the recession worsened. Though some indicators have bottomed or moved upward since then, the jobs outlook remains grim. Wynn says he’s done more than his share of hiring, though the timing of Encore turned out to be a boon for employees at neighboring Wynn Las Vegas who might otherwise have been trimmed but were needed next door.
Wynn led the casino industry’s record political contributions in the mid-1990s, when Las Vegas casino interests ranked among the top sources of political contributions to 1996 presidential candidate Bob Dole. Industry bosses liked Dole’s moderate approach to casino regulation at a time when Congress was setting out to review gambling’s social costs and industry critics were blocking expansion efforts. Wynn, a registered Democrat who has also supported former President Bill Clinton, had publicly attacked a short-lived plan by the Clinton administration in 1994 to levy a federal tax on casinos as a way to pay for welfare reform. (That triggered the formation of the American Gaming Association in 1995 to represent casino interests in Washington.)
At a time when most casino executives kept out of harm’s way, Wynn was an outspoken industry advocate at an unfriendly time for casinos. The mid-1990s were dark times for casino bosses, who thought that both conservatives and liberals were out to destroy — or at least cripple — the source of their livelihood.
The casino industry, with $33 billion in gambling revenue, a 47 percent increase from 1999, is on stronger political footing these days. And though Wynn’s criticism of a president who has been in office for less than a year may upset potential customers and political allies, he is nothing if not consistent in his outspokenness.
Discussion: 50 comments so far…
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The Sun
Locally owned and independent for more than 50 years.
Without commenting on Steve Wynn's management style, his statements are sound. Capitalism is driven by a free market of supply and demand. The market needs to remain unencumbered by government controls.
The citizenry will impose upon those markets that violate the citizenry's rights.
Gaming is a difficult balance because it attempts free market capitalism under a heavily controlled socialist market.
the governor from michigan hit it on the head; wynns too simplistic. i'll grant that wynn has done a lot for vegas and saved it in the late '80s and early '90s. i'll even give him a statue on the strip after he passes on, but to pile on obama only hurts him in the long run. this is the mother of all recessions that obama had nothing to do with and if steve wants to change how things are done in washington dc i suggest he run for political office.
There is nothing really free market about Nevada, as it is reasonably a closed shop state in gaming and big construction contracts.
As to the anonymous casino executive's statements in the article, reference John Delorean years ago. There are a lot of successful narcists in the business world, but success is sticking to what works for you in your business, and not necessarily everyone else in their business and certainly the country's business as a whole. Go start a car company, then see where you are in 10 years.
There are a lot of wealthy fish in various industries in America that are quiet and do not get in the way of national policies.
If Nevada gaming executives true motives are to create new customers to increase the wealth of their employees, including new jobs, they would be advised to be quiet or make statements more in line with the thinking in the rest of the country, as opposed to their personal opinions which may turn off some customers abroad.
Puffed out, always right, and always in control may work in Nevada, but outside Nevada the world is a much bigger fish bowl.
what self respecting proud liberal democrat would ever step foot in wynn or encore???
or the venetian or palazzo???
i know this one won't!!!
besides...
you always seem to have a blast at caesars!!!
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Comment removed by staff. Contained a personal attack.
Comment removed by staff. Contained a personal attack.
Comment removed by staff. Contained a personal attack.
I'm sick and tired of hearing the rants of GOP draft-dodging (commie-siders) felons like Wynn and Lim"p"baugh (crackhead). Wynn is a a double commie-sider because he is pimping and exploiting oppressed Chinese people. Old WASP global (plantation) oppression movie.
Comment removed by staff.
And the most important men in town would come to fawn on me!
They would ask me to advise them,
Like a Solomon the Wise.
"If you please, Reb Tevye..."
"Pardon me, Reb Tevye..."
Posing problems that would cross a rabbi's eyes!
Yar di da da, yar di da da, yar da da da
And it won't make one bit of difference if I answer right or wrong.
When you're rich, they think you really know!
- "If I Were A Rich Man" (A Fiddler on the Roof)
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Why is the Sun beating a dead horse like this??? Wynn's comments occurred two weeks ago and you've been over this territory at least half a dozen times. Not like the Sun has to sell papers, but it does create a nice controversy so at least a half dozen more people would read your garbage, left wing slanted opinions, not news.
And BTW, good for Steve Wynn, not necessarily for his views, but for his help in getting the industry noted as a "mover and shaker." It's about time the national media listened to the opinion of the leaders of the gaming industry, no matter who they are. And shame on those who won't go on the record. This should be a pubic discourse, not private sniping.
For some reason I am in 1000 per cent agreement with what Steve Wynn said on this program. Wall Street bail out, stimulus and healthcare should have taken a back seat to the protection of jobs in this country. The big screw up on the government's part (pre Obama) was to dump all of those funds into wall street, Fanny Freddie freeloader and AIG criminals. More money should have been given to the Detroit Auto industries, small business associations and companies like CIT who only were given 2.33 billion and are now in Chapter 11. Who gets screwed here? US the unemployed hard working taxpayers as usual..
Apples to Oranges with the John DeLorean reference. DMC produced a very viable product that people were actually scrambling over themselves to purchase. There was even a lottery system at some dealerships for the opportunity to purchase DMC-12 automobiles with new cars selling $10,000 over dealer invoice, and the first used cars that arrived on dealer lots selling even higher than that.
DMC had a bad American economy it entered into, the worst winter in several decades, and a currency shift between the and the $ that forced the price of the car to double. Still they turned a huge profit in their first year of business.
When people who had the cash to purchase cars outright ran out, people who wanted to finance came next. But sales didn't last long because there was no DMC Motor Finance credit division. GMAC had to do most of the financing. Rather than form a Credit division to help sell current inventory and future cars, DeLorean got greedy and and did a stock offering to build more cars and increase raw capital used to fund other projects. GMAC pull financial support for consumers and other lenders followed suit leading to the stock pile of cars, and unused parts that are helping sustain our old cars, and build the new ones leaving Houston now.
In spite of all this, financing was still in place to save the company, but rather than payback a load, DeLorean opted for the easy way out... Sure there were threats against his family, but he could have signed the paperwork for the other loans before hand...
What DeLorean tells us is that while financial times can become tough, one can certainly survive if not thrive if they pay attention to people who not only have disposable income, but are willing to part with it.
What Steve Wynn, and yes even the Fertitas failed to heed was the history lesson of the old "Sawdust Joints" and the Flamingo. Upscale is nice, but quickly wears off. And when your business is to cater to a minority customer base (i.e. the wealthy) you're not going to weather the storm as easily. Hence why the Flamingo closed up while places like the El Rancho thrived. You can be more profitable by taking in smaller cash from lots of people, rather than constantly hoping for "whales".
Places like Red Rock and the Wynn didn't simply cater to the wealthy. Their patrons were the ones who were living beyond their means on Credit Cars. So when their customers maxed out their credit, they had nothing more to spend. And while the take is down across the board, how is it that the customer-friendly places like the ones in Henderson and many others are doing decently, yet upscale resorts are constantly suffering?
Easy Answer: History repeating itself, and people like Wynn, the Fertitas, and others thinking that it couldn't ever happen to them...
Whatever Steve Wynn says is tied to what Steve Wynn wants. And whatever Steve Wynn wants, he gets. What Steve Wynn wants and gets is ultimately tied to Steve Wynn's wallet.
Everything else, including Steve Wynn's face, is superficial.
Wynn is da man! Everyone living in Las Vegas should get on their knees and thank him.
All you liberals should go move to China since their government is the one that most resembles your views! Liberals will never be happy until everyone is broke and dependent on the government for everything. Sad, since governments are more corrupt and more self-serving then any one person.
I see nothing "politically incorrect" with Mr. Wynn's comments. They must only be incorrect if your into socialism like the Sun.
When this country was heading into this downturn Obama was a United States Senator. He had an opportunity to help head off this disaster. Instead he was planning his ascension to the throne. Being born in a manger and the darling of all guilt ridden white folks he is now in a position to cure our problems. Nothing is being done. The boy king is too busy campaigning for his re-election.
Comment removed by staff.
why is wynn upset with obama?
bush is the one who brought about this malady.
bush made war based on falsehood; wasted trillions in iraq.
bush and the republicans deregulated the banks
and wall street and eventually destoyed the
economy.
why blame obama?
7pesos:
Why not blame Obama? He's in charge ain't he? He said he could make a change. He is just like all the rest of those politicians, self serving and just talk.
We've seen what happens when we let the free-market decide what's best for America for the last 8 years under Dubya without government regulation and look what happened! They screwed the country over good and runoff with the loot!
phargo, it's isn't, not ain't, ain't is what bush did to you and rest of us.
bush:... " all y'all invest your retirement in
401k's !...america doesn't need social security.
social security in america is a communist idea....
the market will take care of you."
ha,ha,ha.
I see posts claiming "liberals this and liberals that" all the time so would somebody care to tell me whether, in his opinion, Thomas Jefferson and Benjamin Franklin were liberals, moderates or conservatives?
Ditto for Ayatollah Khomeini and Osama bin Ladin.
NOTE TO vegasfun01: You have misidentified the powers. Everybody in Vegas is broke and dependent upon the power brokers who decide without any consideration how to best line their pockets, and only their pockets!
LOL. I love this guy! Steve Wynn speaks for us, the people. The Obama administration likes to marginalize people who do not share his warped view of America but we're not going to take it. He's going to get a fight like he's never imagined. People are waking up, finally!!
mama - if obama gets his way their will be no more Steve Wynns, Bill Gates, etc. Everyone will be poor and living on the street and thanking the government for their access to soap kitchens and dirty hospitals.
"All tyranny needs to gain a foothold is for people of good conscience to remain silent. " - Thomas Jefferson.
Steve Wynn could just as well be a Republican.
There's not a dime's-worth of difference between Republicans and Democrats anyway.
The reason I say that is because both parties are controlled by a common organization behind the scenes.
This is the same common organization which engineered the bubble and the burst bubble in order to gain raw power over all of us -- including over Steve Wynn.
Capitalism, it should be noted, depends heavily on the existence of a stable and reasonably strong government. Government can provide a military force to protect the state from invasion from without, government provides state and local police, government provides infrastructure like roads and airports, government can enforce contracts, government employs millions, government provides an education for many, and so forth. Capitalism NEEDS government to a very high degree, let's be clear about that. To only take the benefits and refuse to pay for or recognize any of that is silly in the extreme.
I'd be more inclined to take Steve seriously if he wasn't in bed with the communist chineese.
China well that's different...his rooms are over priced
"why is wynn upset with obama?" uh, because obama is doing everything he can to create even more turmoil and failure within the economy.
"bush is the one who brought about this malady." uh, nope. ill explain why in a minute.
"bush made war based on falsehood; wasted trillions in iraq." uh, im not sure he went to war based on falsehoods. chemical factories were found, and given the 12 month delay and secret meetings saddam officials had with former KGB agents from syria it is plausible that weapons were moved out.
"bush and the republicans deregulated the banks and wall street and eventually destoyed the economy." uh, again, wrong. the problem was not that the banks were deregulated, it was in fact just the opposite. way back in 1977 president carter passed the cra act which forced banks to loan to high-risk borrowers. in 1995 clinton re-wrote the cra via andrew cuomo, using janet reno as a threat. the details of the housing collapse is thoroughly explained by thomas sowell. the sun refuses to write his articles because greenspun (and i have the article hanging in my business to prove it) supports socialism, making thomas sowell his arch-enemy.
"why blame obama?" again, obama is doing everything within his power to destroy this country in order to rebuild it ...in the exact same way explained in the cloward-piven strategy.
formervegas76:
ain't is accepted here. get over it. Bush is gone and Obama said he could do it and he ain't doin' it.
Frankly, Jobs are what Obama Promised...Like every other politician, personal agendas reign supreme after the election... Wynn is simplistic with some of his remarks, but I agree..create a stimulus for job creation..
Obama is screwing this country over. if you have a job now, chances are you won't in 12 months. anyone with half a brain is getting out of this country and people like Wynn won't hire anymore in the USA. why would he when taxes are going up and Obama is talking bad about Vegas. anyone who lives in Nevada and still supports Obama is a complete idiot.
Obama is like a kid with a credit card,(spend spend) now we the people have no more money whats next? I think he need to stop printing money.I think the paso is worth more than the dollar.
Wynn on "Fox News"-
that about tilts the credibility meter in my book.
Wynn has "jumped the shark".
Looks like he lost a loyal steady partner who knew when to reign his ego in-
Why does this happen so often?
A person succeeds in one area and believes s/he is the utmost authority in others?
Wynn's businesses are failing like many in the casino business. Unfortunately for Steve Wynn he has made many enemies with his abrasiveness and he continues to do so when he goes on Fox news.
I'll never return to his casino-not when he starts spouting off like this.
phargo, idiots are accepted here also.
when the good republicans ;ole Steve Wynn get down with facists Democrates Obama will be back shinning shoes
Las Vegas has started it's slow death soon to be a dust bowl ghost town.
Obama inherited a disaster from Bush and Wynn blames Obama for not fixing it in 10 months, on Fox, no less? I guess Obama mis-placed his magic wand, lol. Poor Steve sounds like a bitter, angry old man blaming his slipping success on a convenient target. If McCain were president he might well be saying the same about McCain, though certainly not on Fox. You're only welcome there if you say nutty, ridiculously false stuff like Obama is destroying or wants to destroy America.
Even though I would never in a million years work for ol Tip Stealin Steve-O, I have to agree with him on most of what he said.
ilovelv wrote: "You're only welcome there (Fox News) if you say nutty, ridiculously false stuff"
Considering Obama appeared on Fox News and over a three day period, your statement does have some fact to it.
formervegas76:
Don't be too hard on yourself sir, we love ya anyway!
Steve Wynn has already bought a place in Dubia. The Sun hasn't informed the public about. All the super rich are buying there, because it will be safer in the future.
The Republicans won the New Jersey and Virginia Governors race! Yippeee! Here we come!
I find it quite interesting to listen to Mr. Wynn. I am not sure if I would agree with all he has to say but I believe his main point about President Obama is valid.
Even if you want to blame the previous administration entirely for the present economic conditions, it is still incumbent on the current administration to get the equipment in place to get us out of the hole no matter who dug it.
As with any idealogue, it appears that he does not want what should be done to get in the way of what he wants to accomplish.
This naturally leads to problems in getting anything done at all if you are not a total dictator. He did promise change, but he didn't say when it was going to arrive did he?